https://www.taxtmi.com/caselaws?id=1958 Capital goods credit reversal under Rule 3(4) of the Cenvat Credit Rules, 2002 was not attracted where the factory was sold as a whole with the capital goods remaining embedded in it. The provision requires physical removal of capital goods from the factory in the manner contemplated by the excise removal scheme, and mere transfer of ownership of the factory as a going concern does not satisfy that condition. The availability of a separate transfer mechanism for unutilised credit on sale of a factory also indicated that such transfers were not intended to trigger reversal of credit already availed and utilised. The demand and penalty were therefore held unsustainable. en-us Tue, 19 Jun 2007 00:00:00 +0530 Tue, 15 Apr 2008 12:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=1958 Capital goods credit reversal under Rule 3(4) of the Cenvat Credit Rules, 2002 was not attracted where the factory was sold as a whole with the capital goods remaining embedded in it. The provision requires physical removal of capital goods from the factory in the manner contemplated by the excise removal scheme, and mere transfer of ownership of the factory as a going concern does not satisfy that condition. The availability of a separate transfer mechanism for unutilised credit on sale of a factory also indicated that such transfers were not intended to trigger reversal of credit already availed and utilised. The demand and penalty were therefore held unsustainable. Case-Laws Central Excise Tue, 19 Jun 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=1958