2013 (10) TMI 663

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....09 to Jan.'10. At the time of removal of used capital goods, the appellant were required to pay an amount as per the provisions of Rule 3(5) of the Cenvat Credit Rules, 2004. During the period of disposal of the used capital goods proviso Rule 3(5) provided that if the Cenvat Credit availed capital goods are removed after being used, the manufacturer shall pay an amount equal to Cenvat Credit originally taken on the said capital goods reduced by 2.5% for each quarter of a year or part thereof, from the date of taking the Cenvat Credit. With effect from 27.02.10 the proviso to Rule 3(5) of the Cenvat Credit Rules was amended. In the amended Rule 3(5), while for the used capital goods, other than Computers & Computer peripherals, the deprecia....

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.... pleaded that the calculation of amount payable at the time of removal of used Cenvat Credit availed capital goods by straight line method was prescribed only by the amendment to Rule 3(5) w.e.f. 27.02.10, that prior to 27.02.10, the method of calculating depreciation was not prescribed, that from this, it cannot be assumed that period prior to 27.02.10, the depreciation @ 2.5% per quarter should be calculated by written down method, and that the appellant have strong prima facie case in their favour and therefore the requirement of pre-deposit of Cenvat Credit demand, interest thereon and penalty may be waived for hearing of the appeal and recovery thereof may be stayed. 4. Sh. A.K. Jain, ld. Jt. CDR, opposed the stay application by reite....