2013 (11) TMI 1154

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....manufacture of cotton yarn classifiable under Heading 5205 of the First Schedule to the Central Excise Tariff Act, 1985. They availed CENVAT credit on the capital goods during the period 1995-98. After several years of use they cleared the said capital goods as used capital goods during the period from 19.7.2004 to 16.3.2005. They paid duty on the transaction value. There is a demand of duty of Rs....

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.... used capital goods and therefore they have rightly paid the duty on the transaction value. She submits that Rule 3(5) of the CENVAT Credit Rules, as amended by Notification No. 39/2007 dated 13.11.2007 provides that on removal of such used capital goods, the manufacturer shall pay an amount equal to the CENVAT credit taken on the said capital goods reduced by 2.5% for each quarter of a year or pa....