2016 (6) TMI 618

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....Commissioner (AR) for the Respondent ORDER The appellant, BSNL is registered with service tax department and are also availing facility of CENVAT Credit on input services and capital goods.  On verification of records it was found that appellant wrongly availed CENVAT Credit on certain inputs and capital goods.  Show cause notice was issued and after due process of law the original....

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....availed credit on capital goods and did not reverse the credit or pay the duty after removal of capital goods to various other units.   As per Rule 3(5) of the CENVAT Credit Rules, 2004, if the capital goods on which credit has been taken are removed, the provider of output service, shall pay an amount equal to the CENVAT Credit taken on such capital goods or reverse the credit.  Th....

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....t.  The appellant ought to have paid the duty or reversed the credit availed when the capital goods were transferred.  The appellant has reversed the credit after passing of the order-in-original.  The violation of provision of Rule 3(5) is explicit.  The learned AR pointed out that credit was wrongly availed and reversed only after the passing of order in original.  Undis....