2009 (2) TMI 621

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.... and pouches. They received printing cylinders and taken credit as capital goods. After use of the cylinders for some time they become unusable for the intended purpose and it would be a scrap unless it is got engraved, rechromed or reengraved. They have sent such worn out cylinders for the purpose of engraving, rechroming, reengraving to the job workers. The said job workers after completing the said operation and treating the goods as manufactured at their end had paid duty on value consisting of value of Base shell and job charges received for such engraving, rechroming and reengraving. Duty paid by the job workers at the time of clearing reconditioned printing cylinders has been taken by the respondent as credit. (b) The origina....

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....over, under Rule 7 of the Cenvat Credit Rules the appellant is entitled for the Cenvat credit." 3. Learned DR submits that the second time credit taken by the respondents is not in order. He submits that the capital goods though cleared after use by the respondents should be treated as cleared as such in terms of Rule 3(5) of Cenvat Credit Rules and they ought to have reversed the Cenvat credit originally taken by them on the printing cylinders. Since they have not reversed it, taking credit for the second time is not in order. Learned DR relies on the decision of the Larger Bench of the Tribunal in the case of Modernova Plastyles Pvt. Ltd. v. C.C.E., Raigad - 2008 (232) E.L.T. 29 (Tri.-LB). 4. Learned Advocate for the respo....