2019 (2) TMI 1417

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....nvat credit has been taken: "Provided also that 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 the percentage points calculated by straight line method as specifi8ed below for each quarter of a year or part thereof from the date of taking the CENVAT Credit. b. for capital goods, other than computers and computer peripherals @2.5% for each quarter." Vide notification No. 18/2012-CE (N.T.) dated 17/03/2012 rule 5A was substituted in the CENVAT credit rules which read as follows: "(5A) If the capital goods, on which the CENVAT Credit has been taken, are remove....

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....lculated is less than the amount equal to the duty leviable on transaction value, the amount to be paid shall be equal to the duty leviable on transaction value. (b)If the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount equal to the duty leviable on transaction value." 2. Ld. Counsel argued that the only reason why Revenue is seeking reversal of CENVAT Credit on the goods, treating the said goods as used capital goods and not as scrap, is that in the invoices of the sale, the goods have been shown in number and not in weight. He argued that the goods have been described as scrap and because they keep the inventory of goods in number, therefore, while selling the number was mentioned. He argued that thi....