https://www.taxtmi.com/caselaws?id=35498 Used capital goods cleared after substantial use are not treated as removed "as such" for the purpose of reversing the entire Cenvat credit originally taken. Rule 3(4) of the Cenvat Credit Rules, 2002 was applied to distinguish unused capital goods, fully scrapped goods, and capital goods removed after use; where the goods had been used for about nine years, the operative basis for reversal was the duty relatable to the depreciated value, not full credit reversal. This approach was supported by the Board circular and the later proviso in Rule 3(5) of the Cenvat Credit Rules, 2004, and avoids anomalous results inconsistent with the credit scheme. en-us Thu, 23 Apr 2009 00:00:00 +0530 Wed, 10 Mar 2010 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35498 Used capital goods cleared after substantial use are not treated as removed "as such" for the purpose of reversing the entire Cenvat credit originally taken. Rule 3(4) of the Cenvat Credit Rules, 2002 was applied to distinguish unused capital goods, fully scrapped goods, and capital goods removed after use; where the goods had been used for about nine years, the operative basis for reversal was the duty relatable to the depreciated value, not full credit reversal. This approach was supported by the Board circular and the later proviso in Rule 3(5) of the Cenvat Credit Rules, 2004, and avoids anomalous results inconsistent with the credit scheme. Case-Laws Central Excise Thu, 23 Apr 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35498