2016 (11) TMI 429

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....missioner (A.R.) for the Respondent. ORDER Per Mr. Anil Choudhary : The appellant, M/s Orient Bell Ltd., is in appeal against Order-in-Appeal No.NOI/EXCUS/002/APP/330-331/2014-15 dated 23/01/2015 passed by the Commissioner (Appeals), Central Excise & Service Tax, Noida. 2. The issue in this appeal is whether capital goods were removed as such, after user for about four years, the appellant ass....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n column old and discarded JCB not usable. The show cause notice dated 25/10/12 was issued pursuant to audit, proposing to Levy Excise duty on the transaction value amounting to Rs. 83,382/- as it appeared to revenue that the appellant have disposed of the capital assets as waste and scrap and accordingly, under Rule 3 (5A) of CCR is required to pay duty on the transaction value. The appellant con....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....fore Commissioner (Appeals), who vide the impugned order have been pleased to uphold the demand rejecting the appeal observing that the appellant cleared 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....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... that as the capital goods in question have been cleared after 10 years of use, the capital goods ipso facto changed the character to waste and scrap. It is further urged that the Levy of duty under Rule 3 (5A) is wholly arbitrary and not according to the scheme of the Act and the Rules, it is fit to be set aside. Further, in absence of any clear-cut guidelines, Revenue cannot assume that capital ....