2015 (3) TMI 694

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....he Honourable CESTAT was correct in holding that 'Capital Goods removed as such' would mean without putting the machinery to any use" 2. The facts, in a nutshell, are as hereunder :- The assessee received one 'speed frame lapping machine' in the year 1997 and took credit of Rs. 1,37,581/- under the head capital goods. After usage of the machine for about 8 years in the manufacture of final products, the assessee cleared the same by reversing the credit to the extent of Rs. 42,400/-. In view of such removal of goods and availment of Cenvat Credit, a show cause notice was issued to the assessee by the Deputy Commissioner of Central Excise, Coimbatore IV Division seeking why the differential amount of Rs. 95,181.26 should....

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....emoved as such which meant without putting the machinery to any use. In the facts of the present case, therefore, the appellants were not required to reverse any credit. In the circumstances, the impugned order demanding differential credit or Rs. 95,181/-, interest thereon and imposing penalty on the appellant is not sustainable. Accordingly, the impugned order is set aside and the appeal is allowed." 5. Heard the learned counsel appearing for the appellant and the learned counsel appearing for the respondent and perused the materials available in the typed set of documents. 6. It is fairly conceded by the learned standing counsel for the appellant that the issue raised in the present case is squarely covered by the decision of this ....