2017 (7) TMI 489

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rocured a Crane in May 1995 for use with the said machinery on which Modvat credit had not been taken since no excise duty was paid on the said goods. They had installed and used the capital goods for the manufacture of dutiable final products. Thereafter, on closure of the factory, the appellants cleared Automatic Vacuum Metallization Plant complete Unit Model TOPMET 2450 C along with spare parts, one Slitting machine and one attached Crane under Invoice No0. 4 dated 26.12.2006 for a total price of Rs. 75,00,000/- and paid excise duty of Rs. 12,24,000/- on the transaction value. Revenue issued Show cause notice dated 3.9.2007 by invoking Rule 3 (5) of the Cenvat Credit Rules, 2004 on the ground that the capital goods were removed as such a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....h is much prior to the introduction of the proviso to Rule 3(5). That the demand equal to the Modvat confirmed is unjustified and pleaded that the same may be set aside. He submitted that the issue was considered by the Larger Bench in the case of CCE, Hyderabad Vs. M/s. Navodhya Plastic Industries Ltd. - 2013 (298) ELT 541 (Tri. Bang) and that Larger Bench observed and followed the judgment of the Hon'ble Madras High Court in the case of CCE, Salem Vs. Rogini Mills Ltd. - 2011 (264) ELT 367 (Mad.). He explained that the Hon'ble High Court of Madras had held that the assesse would be required to reduce the Cenvat credit @ 2.5% for each quarter of a year from the date of taking Cenvat credit allowing the depreciation. The ld. Counsel....