https://www.taxtmi.com/caselaws?id=261306 CENVAT credit reversal under Rule 3(5) applies only when inputs or capital goods on which credit was taken are actually removed as such from the factory or specified premises. Leasing an installed captive power plant within the factory, without physical clearance or invoiced removal, did not amount to removal as such, so the deeming provision was not triggered and the credit reversal demand failed. Because the penalty was based on the same alleged inadmissibility of credit and supposed suppression, once the principal demand failed, the penalty under the Central Excise and CENVAT provisions also could not survive. The Tribunal's view was upheld and the Revenue's appeals failed. en-us Thu, 04 Jun 2015 00:00:00 +0530 Sat, 10 Oct 2015 13:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=261306 CENVAT credit reversal under Rule 3(5) applies only when inputs or capital goods on which credit was taken are actually removed as such from the factory or specified premises. Leasing an installed captive power plant within the factory, without physical clearance or invoiced removal, did not amount to removal as such, so the deeming provision was not triggered and the credit reversal demand failed. Because the penalty was based on the same alleged inadmissibility of credit and supposed suppression, once the principal demand failed, the penalty under the Central Excise and CENVAT provisions also could not survive. The Tribunal's view was upheld and the Revenue's appeals failed. Case-Laws Central Excise Thu, 04 Jun 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=261306