TaxTMI 
TaxTMI 
2019 (2) TMI 844
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....d ingot moulds to cast the molten metal emanating from the induction furnace. Ingot moulds are purchased from outside and the Excise duty paid on such moulds is availed as cenvat credit on capital goods in terms of the Cenvat Credit Rules, 2004. Such Ingot Moulds are repeatedly used in the manufacture and after they become unusable, they are cleared from the factory. The Departmental Officers noticed that such Ingot Moulds were cleared by issue of trade invoices describing them as "Rejected/Defected Ingot Moulds" without reversal of cenvat credit availed on such capital goods. Accordingly, Department formed the view that the appellant was required to reverse an amount equal to the cenvat credit availed on such capital goods in terms of the ....
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.... shall be made under the cover of an invoice referred to in rule 9 : Provided that such payment shall not be required to be made where any inputs are removed outside the premises of the provider of output service for providing the output service : Provided further that such payment shall not be required to be made when any capital goods, are removed outside the premises of the provider of output service for providing the output service and the capital goods are brought back to the premises within 180 days, or such extended period not exceeding 180 days as may be permitted by the jurisdictional Deputy Commissioner of Central Excise, or Assistant Commissioner of Central Excise, as the case may be, of their removal. (ii) The ld.Advoca....
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....rd both sides and perused the records. 7. The legal provision dealing with the clearance of capital goods, after availing the cenvat credit, is covered by Rule 3(5) ibid. This sub-rule provides that cenvat credit availed on capital goods is required to be reversed at the time of removal of capital goods "as such". It is further seen the above sub-rule was further amended by Notification No.39/2007-CE (NT) dated 30.11.2007, by which, a proviso was inserted to specify that in respect of clearance of capital goods, after being used, the manufacturer was required to reverse the amount equal to the cenvat credit taken, reduced by 2.5% for each quarter of year or part thereof. Further, it is noticed that the period of dispute is prior to inser....
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....y. In the present case, it has been held by the Tribunal that goods were not cleared in the same position but after having been used and in such situation Rule 3(5) of the Rules will not apply." 12. Bombay High Court in the case of Cummins India Ltd. v. Commissioner of Central Excise, Pune-III reported in 2007 (219) E.L.T. 911 (Tri.-Mumbai) confirmed the order of the Appellate Tribunal which has held as under : "The plain and simple meaning of expression "as such" would be that capital goods are removed without putting them to use. Admittedly, in the present case capital goods have been used for a period of more than 7 to 8 years. As such, interpretation given by the authorities below would lead to absurd results if an assessee is req....