https://www.taxtmi.com/caselaws?id=173957 CENVAT credit on capital goods need not be reversed when the goods are cleared after having been put to use, because such clearance is not removal "as such" under Rule 3(5) of the CENVAT Credit Rules, 2004. The expression "as such" was read in its ordinary sense and held not to extend to used capital goods merely because they were later sent out for reconditioning or further processing. The contrary Larger Bench view on a different provision was treated as inapplicable, while the decision recognising that post-use removal does not trigger reversal was followed. As a result, the demand, interest, and penalty could not survive. en-us Wed, 29 Sep 2010 00:00:00 +0530 Fri, 25 Sep 2015 12:50:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=173957 CENVAT credit on capital goods need not be reversed when the goods are cleared after having been put to use, because such clearance is not removal "as such" under Rule 3(5) of the CENVAT Credit Rules, 2004. The expression "as such" was read in its ordinary sense and held not to extend to used capital goods merely because they were later sent out for reconditioning or further processing. The contrary Larger Bench view on a different provision was treated as inapplicable, while the decision recognising that post-use removal does not trigger reversal was followed. As a result, the demand, interest, and penalty could not survive. Case-Laws Central Excise Wed, 29 Sep 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=173957