2009 (6) TMI 508

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....the month of February, 2005 that the appellant removed capital goods to their new unit on reversal of credit on the depreciated value. By a show cause notice dated 9-11-05 the appellant was directed to pay the differential duty of Rs.6,15,466/- basic Excise duty and Rs.12,309/- education cess as they have contravened Rule 3(5) of Cenvat Credit Rules and to impose penalty. It has been alleged that they have availed credit of Rs.7,68,331/- on the capital goods and at the time of clearing to their new unit and paid the duty of Rs.1,52,865.00 on depreciated value. The original authority confirmed the demand of duty and imposed penalty of Rs.2 lakhs along with interest. Commissioner (Appeals) upheld the adjudication order. Hence the appellant fi....

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....rer of final products shall pay the equal amount of credit availed in respect of such capital goods. He also submits that in this case the appellant cleared the goods on depreciated value. There is no provision for reversal of credit on depreciated value during the relevant period. 4. After hearing from both sides and on perusal of record, it appears that the appellant availed the credit on capital goods prior to 1-4-01 and used in the manufacture of finished goods during the relevant period. Thereafter they removed the capital goods to their new unit for use in the manufacture of finished goods as their old unit is closed down. Thus it is a case of transfer of capital goods inter-unit. Therefore, the case may be decided on the issue of re....