TaxTMI 
TaxTMI 
2018 (5) TMI 1286
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.... Compressed Oxygen Gases, Dissolved Acetylene Gas, Medical Oxygen Gas and Liquid Nitrogen Gas etc. which are dutiable. They are registered with the Central Excise Department and had been paying duty all along. They will also availing the facility of Cenvat credit on both inputs as well as capital goods. There was an audit conducted by the Department and as per the draft audit report dated 28/04/2010, appellant had sold damaged capital goods, scrap without payment of duty during the period 2006-07 to 2008-09 being sale of Brass scrap, MS scrap of old Oxygen Plant, accessories of plant and machinery is - chilling coil, boiler, pump, old pipes etc. It appeared to Revenue that the assessee must invariably have taken credit of duty paid on capit....
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....of Modvat/Cenvat credit. That the value of scrap and unserviceable items of plant and machinery shown in trial balance in the year 2005-06, 2006-07 and 2007-08 pertain to sale of unserviceable and scrap items of plant and machinery on which no Modvat credit has been ever taken by the assessee. It was further asserted that the appellant have not taken any credit on the plant and machinery removed as scrap, as per details contained in Annexure-A to the SCN. Accordingly, it was contested that they are not required to pay any amount by way of reversal under Rule 3(5) or 3(5)(A) of CCR, 2004. The SCN was adjudicated by the Joint Commissioner was pleased to confirm the proposed duty with interest and equal amount of penalty observing that the sub....