2008 (10) TMI 405

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....ocate, for the Respondent. [Order]. -  This is an appeal filed by the Revenue. M/s. Rajalakshmi Mills had cleared used capital goods as 'scrap' on payment of duty applicable to scrap. The respondents had received the capital goods in 1996 and had availed the credit. The authorities held that capital goods on which credit had been availed could be cleared on payment of the entire credit ....

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....such', the assessee was required to pay the credit originally availed. Therefore, the impugned order was not consistent with the statutory provisions. The same required to be set aside. Heard both sides. 2. I have considered the case records and the submissions made by both sides. It is seen that the Commissioner (Appeals) passed the impugned order relying on a decision of the Bangalore Be....

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.... the above Circular is applicable only to capital goods removed as such and not to the used cenvated capital goods. In other words, the appellant is not required to pay duty when the used machinery is sold. Hence, the appeal is allowed with consequential relief." 3. As the capital goods had been cleared after use for about 8 years by the assessee, the impugned goods are not capital goods "....