https://www.taxtmi.com/caselaws?id=239850 Cenvat credit was held admissible on used capital goods cleared as scrap where the receiving unit actually used them as capital goods. The fact that the goods were described as scrap at the time of transfer did not defeat credit, because entitlement depended on their actual use, not the transfer label. Duty had been paid on clearance under Rule 3(5A) of the Cenvat Credit Rules, 2004, and the prior Tribunal ruling was applied on principle despite arising under the earlier Modvat regime. The demand, interest, and penalties were not sustainable, and the order denying credit was set aside. en-us Fri, 01 Nov 2013 00:00:00 +0530 Sat, 23 Nov 2013 13:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=239850 Cenvat credit was held admissible on used capital goods cleared as scrap where the receiving unit actually used them as capital goods. The fact that the goods were described as scrap at the time of transfer did not defeat credit, because entitlement depended on their actual use, not the transfer label. Duty had been paid on clearance under Rule 3(5A) of the Cenvat Credit Rules, 2004, and the prior Tribunal ruling was applied on principle despite arising under the earlier Modvat regime. The demand, interest, and penalties were not sustainable, and the order denying credit was set aside. Case-Laws Central Excise Fri, 01 Nov 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=239850