https://www.taxtmi.com/caselaws?id=450285 CESTAT Ahmedabad allowed the appeal regarding CENVAT credit reversal on tools and moulds. The appellant had purchased tools and moulds for manufacturing excisable automobile components but issued VAT invoices showing them as sold to a company. The department demanded CENVAT credit reversal under Rule 3(5A)(a) of CENVAT Credit Rules, 2004. CESTAT held that CENVAT credit reversal is required only upon physical removal of capital goods. Since the department failed to prove physical removal and the tools remained in the appellant's factory for manufacturing excisable goods, the demand was unjustified. The original order was set aside. en-us Thu, 29 Feb 2024 00:00:00 +0530 Sat, 02 Mar 2024 07:22:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450285 CESTAT Ahmedabad allowed the appeal regarding CENVAT credit reversal on tools and moulds. The appellant had purchased tools and moulds for manufacturing excisable automobile components but issued VAT invoices showing them as sold to a company. The department demanded CENVAT credit reversal under Rule 3(5A)(a) of CENVAT Credit Rules, 2004. CESTAT held that CENVAT credit reversal is required only upon physical removal of capital goods. Since the department failed to prove physical removal and the tools remained in the appellant's factory for manufacturing excisable goods, the demand was unjustified. The original order was set aside. Case-Laws Central Excise Thu, 29 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450285