2015 (10) TMI 1335

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Per: R Periasami: The short issue arises in this appeal relates to reversal of capital goods credit availed by the appellants at the time of removal of used capital goods. Appellant availed capital goods credit of Rs. 1,82,730/- whereas at the time of removal of the capital goods they have reversed the credit as per the transaction value of Rs. 1,48,522/-. Ld. adjudicating authority confirmed ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ngs of the impugned order. 4. Heard both sides and perused the records. 5. The short issue in the present case is reversal of cenvat credit availed on the capital goods. It is seen that the lower authority has demanded differential cenvat credit of Rs. 34,208/- on the capital goods removed after use without allowing the depreciation. I find from the work sheet submitted by the appellant, the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the period when similar provision was in force C.B.E. & C. had issued Circular No. 643/34/2002-CX., dated 1-7-2002 to the effect that credit amount to be reversed will be reduced by 2.5% per quarter of use of the machinery. 9. After 13-11-2007 the applicable provisions read as under: With effect from 13-11-2007, the following provision has been introduced in Rule 3(5) ibid . Provided als....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e Hon'ble Madras High Court in the case of Commissioner of Central Excise, Salem v. Rogini Mills Ltd. (supra) and the reference made to this Larger Bench is answered accordingly". In view of the above Tribunal's LB decision the appellants are eligible for depreciation on the value of capital goods as per Board's Circular dated 01.07.2002. The appellant has already paid the different....