https://www.taxtmi.com/caselaws?id=218188 When used capital goods are removed, the amount payable is computed under the second proviso to Rule 3(5) of the Cenvat Credit Rules, 2004 by reducing the credit taken by 2.5% for each quarter or part thereof from the date of taking credit. On the stated facts, the goods had been used for many years and the credit stood fully exhausted before clearance, so no reversal of cenvat credit was payable. The contrary view that the reduction formula could operate only from the date of insertion of the proviso was rejected, and the demand, interest, and penalty could not survive. en-us Thu, 09 Aug 2012 00:00:00 +0530 Mon, 30 Dec 2013 14:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=218188 When used capital goods are removed, the amount payable is computed under the second proviso to Rule 3(5) of the Cenvat Credit Rules, 2004 by reducing the credit taken by 2.5% for each quarter or part thereof from the date of taking credit. On the stated facts, the goods had been used for many years and the credit stood fully exhausted before clearance, so no reversal of cenvat credit was payable. The contrary view that the reduction formula could operate only from the date of insertion of the proviso was rejected, and the demand, interest, and penalty could not survive. Case-Laws Central Excise Thu, 09 Aug 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=218188