https://www.taxtmi.com/caselaws?id=1960 Credit reversal on capital goods removed from the factory was held not exigible where the goods were supplied to a 100% Export Oriented Unit against a valid CT-3 certificate under the applicable exemption notification. Rule 3(4) of the Cenvat Credit Rules, 2002 requires reversal on removal, and Rule 3(5) treats that amount as duty for the recipient; however, read with the exemption framework for clearances to an eligible EOU, no further reversal could be demanded on such exempted supply. The duty demand and penalty were accordingly set aside. en-us Wed, 09 May 2007 00:00:00 +0530 Tue, 15 Apr 2008 12:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=1960 Credit reversal on capital goods removed from the factory was held not exigible where the goods were supplied to a 100% Export Oriented Unit against a valid CT-3 certificate under the applicable exemption notification. Rule 3(4) of the Cenvat Credit Rules, 2002 requires reversal on removal, and Rule 3(5) treats that amount as duty for the recipient; however, read with the exemption framework for clearances to an eligible EOU, no further reversal could be demanded on such exempted supply. The duty demand and penalty were accordingly set aside. Case-Laws Central Excise Wed, 09 May 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=1960