2018 (11) TMI 666

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.....9.2010 passed by the Commissioner of Central Excise (Appeals), Mumbai-I. 2. Briefly stated facts of the case are that the appellant M/s Solid Containers Ltd. had availed CENVAT Credit on various capital goods during the period 1994 to 1997 amounting to Rs. 18,94,007/-. The capital goods after being used in the factory premises sold/cleared during the month of April/May, 2007 at a total price of Rs. 3,81,00,000/- to various customers. Alleging that the appellant has failed to discharge duty/reverse the credit availed on capital goods cleared as such, a show-cause notice was issued to them for recovery of the duty amounting to Rs. 18,94,007/- with interest and penalty; also the capital goods purchased by various customers had been proposed ....

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....uch" for the purpose of Rule 3(5) of CENVAT Credit Rules, 2004, hence, not liable to duty on its sale from the factory. It is his contention that various Tribunals and High Courts have consistently observed that the principles laid down by the Larger bench of this Tribunal in the case of Modernova Plastyles Pvt. Ltd. Vs. Commissioner - 2008 (232) ELT 29 (Tri-LB) is not a good law. It is his contention that this Tribunal in the case of Nahar Industrial Enterprises Ltd. - 2016 (9) TMI 889-CESTAT New Delhi, decided the issue in their favour. Further, he has submitted that in any case at the most they would required to reverse/pay the duty on the depreciated value i.e. after deduction of 2.5% per quarter from the original value as per the provi....

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....ing a difference of larger Bench. The Larger Bench in Navodhaya Plastic Industries Ltd.'s case (supra) following the judgment of the Hon'ble Madras High Court in the case of Rogini Mills Ltd.'s case, after analyzing the provisions governing reversal of credit on capital goods on its removal from the factory after use observed as follows: - "10. The use of capital goods is to spread over many years. A decision to the effect that assessees can bring in capital goods, use 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....