2016 (11) TMI 429

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.... whether capital goods were removed as such, after user for about four years, the appellant assessee is required to reverse Cenvat credit on the basis of transaction value under Rule 3 (5A) or required to reverse proportionate Cenvat credit under the provisions of Rule 3(5) of CCR 2004. 3. The brief facts are that the appellant is a manufacturer of glazed ceramics tiles and vitrified tiles et cetera, the appellant had acquired by purchase, two earth mover-JCB machines on 3/8/2000 for Rs. 20,34,002/- and had taken the Cenvat credit on the capital goods as permitted under law on 25/9/2000. After using the said earthmoving machines for about 10 years, or 40 quarters, the appellant sold the used JCB earthmoving machines vide sale invoice dat....

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.... the old and discarded JCB machines under the description " not usable on the invoice. The said description clearly shows that the old and discarded JCB machines have been removed as not usable, due to long span of use and hence, have attained the nature of waste and scrap. Therefore, machine made from iron and steel, changed its character to waste and scrap. 4. Being aggrieved, the appellant is in appeal before this Tribunal, on the grounds this that ld. Commissioner (Appeals) has failed to appreciate that the appellant have used the JCB machines for 40 quarters and as such, he is entitled to 100% depreciation of Cenvat credit under Rule 3 (5). The nomenclatures not usable does not amount to waste and scrap, as the same is usable for th....