2018 (12) TMI 1528

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....edit Rules, 2004, the appellant is required to pay an amount equal to the cenvat credit availed at the time of receipt of the capital goods, accordingly, demand was confirmed and the same was upheld by Ld. Commissioner(Appeals), therefore, the present appeal. 2. Sh. Amal Dave, Ld. Counsel appearing on behalf of the appellant submits that during the relevant period i.e. July 2006, as per Rule 3(5), the duty was required to be paid only if the capital goods is removed as such or the capital goods cleared as waste and scrap, whereas in the present case, the capital goods was neither cleared as such nor as waste and scrap, therefore, there was no provision for payment of duty in respect of removal of capital goods after use thereof. Therefor....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t shall not be required to be made where any inputs or capital goods are removed outside the premises of the provider of output service for providing the output service : (5A) If the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount equal to the duty leviable on transaction value. (5B) If the value of any, (i) input, or (ii) capital goods before being put to use, on which CENVAT credit has been taken is written off fully or where any provision to write off fully has been made in the books of account, then the manufacturer or service provider, as the case may be, shall pay an amount equivalent to the CENVAT credit taken in respect of the said input or capital goods: Provided that if the said....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e was no liability to pay duty. In fact, this is evident from the fact that in Cenvat Credit Rules, 2004, the proviso was added making the position clear which was not there in the earlier orders. The proviso reads thus: "if the capital goods, on which CENVAT Credit has been taken, are removed after being used, the manufacturer or provider of output service shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by 2.5 per cent for each quarter of a year or part thereof from the date of taking the Cenvat Credit." This proviso was added by a Notification No. 39/2007 dated 13-11-2007. Therefore, prior to 13-11-2007, there was no duty payable in respect of capital goods which was used before it is removed. ....