https://www.taxtmi.com/caselaws?id=220648 The tribunal allowed the appeal, emphasizing the distinction between goods cleared without use and those cleared after utilization. The tribunal highlighted that capital goods lose their identity only when they become unserviceable after a period of use, and reversing cenvat credit after a few years of use would defeat the purpose of the scheme. The tribunal referred to the proviso added to Rule 3(5) of the Cenvat Credit Rules in 2007, which required the manufacturer to pay an amount equal to the cenvat credit taken on capital goods reduced by 2.5% for each quarter of a year from the date of taking the credit if the goods are removed after use. en-us Thu, 17 Jan 2013 00:00:00 +0530 Mon, 04 Feb 2013 07:37:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=220648 The tribunal allowed the appeal, emphasizing the distinction between goods cleared without use and those cleared after utilization. The tribunal highlighted that capital goods lose their identity only when they become unserviceable after a period of use, and reversing cenvat credit after a few years of use would defeat the purpose of the scheme. The tribunal referred to the proviso added to Rule 3(5) of the Cenvat Credit Rules in 2007, which required the manufacturer to pay an amount equal to the cenvat credit taken on capital goods reduced by 2.5% for each quarter of a year from the date of taking the credit if the goods are removed after use. Case-Laws Central Excise Thu, 17 Jan 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=220648