https://www.taxtmi.com/caselaws?id=202871 Rule 3(5) of the Cenvat Credit Rules, 2004 applies only when the assessee has availed Cenvat credit on inputs or capital goods and removes those goods as such from its factory or premises. On the facts, the assessee had not taken credit on the Nitration Plant, and a mere possibility that a previous owner may have done so was insufficient to impose liability. Because the factory was purchased as a whole, there was no removal in the sense contemplated by the rule. The demand, interest, and penalty were therefore set aside. en-us Thu, 29 Jul 2010 00:00:00 +0530 Sat, 07 Sep 2013 15:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=202871 Rule 3(5) of the Cenvat Credit Rules, 2004 applies only when the assessee has availed Cenvat credit on inputs or capital goods and removes those goods as such from its factory or premises. On the facts, the assessee had not taken credit on the Nitration Plant, and a mere possibility that a previous owner may have done so was insufficient to impose liability. Because the factory was purchased as a whole, there was no removal in the sense contemplated by the rule. The demand, interest, and penalty were therefore set aside. Case-Laws Central Excise Thu, 29 Jul 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=202871