https://www.taxtmi.com/caselaws?id=218857 Used capital goods cleared from a factory after prior use are not treated as removed "as such" under Rule 3(4) of the CENVAT Credit Rules, 2002, or the corresponding Rule 3(5) of the 2004 Rules. On that basis, reversal of the original CENVAT credit is not required where the goods were first used in manufacture and then cleared on payment of duty on their transaction value. Duty paid on the depreciated value of the used capital goods was therefore considered legally sufficient, and a differential duty demand based on credit reversal was unsustainable. en-us Tue, 13 Nov 2012 00:00:00 +0530 Tue, 27 Nov 2012 18:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=218857 Used capital goods cleared from a factory after prior use are not treated as removed "as such" under Rule 3(4) of the CENVAT Credit Rules, 2002, or the corresponding Rule 3(5) of the 2004 Rules. On that basis, reversal of the original CENVAT credit is not required where the goods were first used in manufacture and then cleared on payment of duty on their transaction value. Duty paid on the depreciated value of the used capital goods was therefore considered legally sufficient, and a differential duty demand based on credit reversal was unsustainable. Case-Laws Central Excise Tue, 13 Nov 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=218857