2018 (4) TMI 152

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....rish, Dy. Commissioner(AR), For the Appellant Shri G. Shivadass, Advocate, For the Respondent Per: V, PADMANABHAN The present appeal is filed by the Revenue against the Order in-Appeal No. 25/2008-LTU dated 13/08/2008. The 'respondents are engaged in the manufacture of excisable goods such as spark plugs, alternators etc. falling under Chapter 84 and 85 of the CETA, 1985. They procure....

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....rish for the Revenue and Shri G. Shivadass for the respondent. 3. After hearing both sides and perusal of records, we note that the capital goods which were procured by the respondent were installed and used in the factory for a significant period of time. Subsequently, at the time of clearance of such used goods, duty has been paid on the transaction value. The only question before us is wheth....

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.... goods were cleared as scrap. In the case of Raghav Alloys (supra) the Hon'ble Punjab and Haryana High Court ordered reversal of credit after allowing deduction at the rate of 2.5% of the credit for each quarter of use of the machine as prescribed under C.B.E. & C. Circular No. 643/34/2002-CX., dated 1-7-2002. In the case of Rogini Mills Ltd. (supra), the Madras High Court also upheld a decisi....

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....e it for a few days and then remove it without reversal of any Cenvat credit taken is not consistent with the overall scheme of Cenvat credit and can lead to abuse of the scheme. Considering this aspect and the legislative history and the Circular of C.B.E. & C, we are of the view that we should respectfully follow the decision of the Hon'ble Madras High Court in the case of Commissioner of Ce....