https://www.taxtmi.com/caselaws?id=335941 Duty under Rule 3(5) of the Cenvat Credit Rules, 2004 arises only when Cenvat credit has been taken on capital goods and those goods are later removed. Where old plant and machinery were sold as scrap, the assessee had not availed any Cenvat or Modvat credit on those assets, and the goods had been acquired before capital goods were brought within the Modvat scheme, no liability could be presumed. The Tribunal also noted that the machinery had been used for more than 10 years, and on those facts the demand was unsustainable. The duty demand was therefore held not payable and the Revenue appeal was rejected. en-us Thu, 11 Aug 2016 00:00:00 +0530 Tue, 13 Dec 2016 11:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=335941 Duty under Rule 3(5) of the Cenvat Credit Rules, 2004 arises only when Cenvat credit has been taken on capital goods and those goods are later removed. Where old plant and machinery were sold as scrap, the assessee had not availed any Cenvat or Modvat credit on those assets, and the goods had been acquired before capital goods were brought within the Modvat scheme, no liability could be presumed. The Tribunal also noted that the machinery had been used for more than 10 years, and on those facts the demand was unsustainable. The duty demand was therefore held not payable and the Revenue appeal was rejected. Case-Laws Central Excise Thu, 11 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=335941