https://www.taxtmi.com/caselaws?id=342489 Used capital goods are not cleared "as such" when they are transferred after prior use in the purchaser's factory and then employed in its own manufacture. Where the predecessor had already taken and utilised Cenvat credit, and the purchaser merely acquired ownership by sale without taking over a running unit with liabilities, no reversal of credit can be demanded on later clearance of those goods. The pre-amendment Cenvat Credit Rules did not impose liability on removal of used capital goods, and the later proviso for such clearances shows that the unamended rule did not cover them. The demand and penalty were therefore unsustainable. en-us Wed, 29 Mar 2017 00:00:00 +0530 Tue, 21 Nov 2017 14:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=342489 Used capital goods are not cleared "as such" when they are transferred after prior use in the purchaser's factory and then employed in its own manufacture. Where the predecessor had already taken and utilised Cenvat credit, and the purchaser merely acquired ownership by sale without taking over a running unit with liabilities, no reversal of credit can be demanded on later clearance of those goods. The pre-amendment Cenvat Credit Rules did not impose liability on removal of used capital goods, and the later proviso for such clearances shows that the unamended rule did not cover them. The demand and penalty were therefore unsustainable. Case-Laws Central Excise Wed, 29 Mar 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=342489