https://www.taxtmi.com/caselaws?id=4047 Rule 3(5) of the Cenvat Credit Rules, 2004 applies only when inputs or capital goods are removed as such from the factory. Credit taken for a captive power plant situated within the factory premises and functioning as part of the approved manufacturing setup was not required to be reversed on its lease to another company, because the goods were not physically removed and the rule contains no deeming fiction treating a lease as removal. The demand for reversal therefore failed, and the consequential interest and penalty were also unsustainable. en-us Wed, 14 Nov 2007 00:00:00 +0530 Sat, 17 May 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=4047 Rule 3(5) of the Cenvat Credit Rules, 2004 applies only when inputs or capital goods are removed as such from the factory. Credit taken for a captive power plant situated within the factory premises and functioning as part of the approved manufacturing setup was not required to be reversed on its lease to another company, because the goods were not physically removed and the rule contains no deeming fiction treating a lease as removal. The demand for reversal therefore failed, and the consequential interest and penalty were also unsustainable. Case-Laws Central Excise Wed, 14 Nov 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=4047