2007 (3) TMI 589

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....d Kumar, JDR, for the Respondent. [Order per : Archana Wadhwa, Member (J)]. -  The appellants are engaged in the manufacture of I.C. Engines. They had taken Modvat credit in respect of some capital goods in the year 1996. The said capital goods were in use in the appellant's factory up to January, 2002. However, the same were cleared by the appellant as old, used and scrapped machines u....

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....and simple meaning of the expression "as such" would be that the capital goods are removed without putting them to use. Admittedly, in the present case capital goods stand used for a period of more than 7 to 8 years. As such, the interpretation given by the authorities below would lead to absurd results if an assessee is required to reverse the credit originally availed by them at the time of rece....