https://www.taxtmi.com/caselaws?id=170411 On clearance of used capital goods after prolonged use, the applicable Cenvat rule required payment of duty on the transaction value at the time of removal, not reversal of the entire credit originally availed. The later amendment to Rule 3(5) could not be applied retrospectively to goods cleared in December 2005, so the demand for balance credit reversal was unsustainable. Penalty was also set aside because the clearance was under invoice, sales tax had been paid, there was no clandestine removal, and the duty difference arose from a bona fide understanding that was corrected after the audit objection. en-us Tue, 15 Mar 2011 00:00:00 +0530 Wed, 27 May 2015 11:58:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=170411 On clearance of used capital goods after prolonged use, the applicable Cenvat rule required payment of duty on the transaction value at the time of removal, not reversal of the entire credit originally availed. The later amendment to Rule 3(5) could not be applied retrospectively to goods cleared in December 2005, so the demand for balance credit reversal was unsustainable. Penalty was also set aside because the clearance was under invoice, sales tax had been paid, there was no clandestine removal, and the duty difference arose from a bona fide understanding that was corrected after the audit objection. Case-Laws Central Excise Tue, 15 Mar 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=170411