https://www.taxtmi.com/caselaws?id=329118 MODVAT/CENVAT credit on capital goods and inputs was considered in the context of a unit converting part of its business into a 100% EOU within the same factory premises. The stated principle is that such an internal reorganisation does not amount to removal from the factory for purposes of Rule 3(4) of the Cenvat Credit Rules, 2002, where the goods remain within the same premises and no transfer occurs to a distinct outside unit. On that basis, credit reversal was treated as not exigible, with earlier decisions on actual sale or physical removal distinguished on facts. The note also states that the demand, interest, and penalties were not sustainable. en-us Tue, 10 May 2016 00:00:00 +0530 Wed, 21 Dec 2016 16:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=329118 MODVAT/CENVAT credit on capital goods and inputs was considered in the context of a unit converting part of its business into a 100% EOU within the same factory premises. The stated principle is that such an internal reorganisation does not amount to removal from the factory for purposes of Rule 3(4) of the Cenvat Credit Rules, 2002, where the goods remain within the same premises and no transfer occurs to a distinct outside unit. On that basis, credit reversal was treated as not exigible, with earlier decisions on actual sale or physical removal distinguished on facts. The note also states that the demand, interest, and penalties were not sustainable. Case-Laws Central Excise Tue, 10 May 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=329118