https://www.taxtmi.com/caselaws?id=2217 Worn-out and discarded machinery parts cleared as scrap before 16-5-2005 were not treated as capital goods removed "as such" under Rule 3(4) of the Cenvat Credit Rules, 2001, because liability under that rule applied only to removal of inputs or capital goods in their original form. The Tribunal noted that a specific levy on capital goods cleared as waste and scrap on transaction value was introduced only by Rule 3(5)(a) of the Cenvat Credit Rules, 2004 with effect from 16-5-2005. For the relevant period, no duty, interest or penalty could be demanded on such scrap clearance. en-us Thu, 19 Jul 2007 00:00:00 +0530 Tue, 15 Apr 2008 16:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=2217 Worn-out and discarded machinery parts cleared as scrap before 16-5-2005 were not treated as capital goods removed "as such" under Rule 3(4) of the Cenvat Credit Rules, 2001, because liability under that rule applied only to removal of inputs or capital goods in their original form. The Tribunal noted that a specific levy on capital goods cleared as waste and scrap on transaction value was introduced only by Rule 3(5)(a) of the Cenvat Credit Rules, 2004 with effect from 16-5-2005. For the relevant period, no duty, interest or penalty could be demanded on such scrap clearance. Case-Laws Central Excise Thu, 19 Jul 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=2217