https://www.taxtmi.com/caselaws?id=351815 When capital goods are removed after use under the Cenvat Credit regime, duty liability is to be worked out on the depreciated value rather than the full credit taken. The Tribunal relied on the Larger Bench view that depreciation at 2.5% per quarter is allowable from the date credit is availed until the date of removal, notwithstanding Rule 3(5) of the Cenvat Credit Rules. Applying that principle, the demand could not stand on the full credit amount. The order was set aside and the matter remanded for re-quantification of duty and penalty after allowing depreciation and providing an opportunity of hearing. en-us Wed, 18 Oct 2017 00:00:00 +0530 Fri, 01 Dec 2017 17:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=351815 When capital goods are removed after use under the Cenvat Credit regime, duty liability is to be worked out on the depreciated value rather than the full credit taken. The Tribunal relied on the Larger Bench view that depreciation at 2.5% per quarter is allowable from the date credit is availed until the date of removal, notwithstanding Rule 3(5) of the Cenvat Credit Rules. Applying that principle, the demand could not stand on the full credit amount. The order was set aside and the matter remanded for re-quantification of duty and penalty after allowing depreciation and providing an opportunity of hearing. Case-Laws Central Excise Wed, 18 Oct 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=351815