https://www.taxtmi.com/caselaws?id=265294 Used and worn capital goods cleared after use as scrap are not treated as removal of capital goods "as such" for demanding reversal of the entire Cenvat credit. The applicable framework distinguishes between unused goods removed in original condition and goods cleared after being put to use; here, the records showed the rollers and machinery had lost utility and required further processing, so full credit reversal was unsustainable. For such clearances, duty is to be worked out on depreciated value, with only any differential duty recoverable after re-quantification. Any excess duty already paid does not create further liability in this proceeding. en-us Wed, 17 Jun 2015 00:00:00 +0530 Fri, 09 Oct 2015 10:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=265294 Used and worn capital goods cleared after use as scrap are not treated as removal of capital goods "as such" for demanding reversal of the entire Cenvat credit. The applicable framework distinguishes between unused goods removed in original condition and goods cleared after being put to use; here, the records showed the rollers and machinery had lost utility and required further processing, so full credit reversal was unsustainable. For such clearances, duty is to be worked out on depreciated value, with only any differential duty recoverable after re-quantification. Any excess duty already paid does not create further liability in this proceeding. Case-Laws Central Excise Wed, 17 Jun 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=265294