2016 (12) TMI 154

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....an, Advocate - for the appellant. Shri Yogesh Agarwal, Authorized Representative (DR) - for the Respondent. ORDER The appeal is against order dated 30/08/2012 of Commissioner of Central Excise, Bhopal. The short issue involved in the present appeal is the appellant's duty liability at the time of clearance of capital goods on which credit has been availed by them. The appellants availed C....

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.... duty @ 10% to their sister unit at Panipat. The Department contended that they have to pay duty @ 16% Ad- valorem as prevailing at the time of clearance of such capital goods. The impugned order held that the capital goods were cleared after prolonged use and by applying Rule 3 (5A) of Cenvat Credit Rules, 2004 the duty liability @ 16% prevailing at the time of removal should be discharged. We fi....

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....tion of the appellant that even the provisions of Rule 3 (5) were not applicable to the appellants as the goods have been cleared after prolonged use and cannot be considered as clearance as such. However, in the present case, the appellants reversed whatever credit availed by them on such capital goods. In these circumstances, we find no justification to demand any extra amount from the appellant....