2019 (2) TMI 1417

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....ility on actual goods revoked on which Cenvat 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 whi....

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....puter peripherals @ 2.5% for each quarter: Provided that if the amount so calculated 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....

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..../2012 to 27/09/2013, the law is very clear and even in respect of capital goods cleared as scrap, the appellants are required to reverse the credit as per the said provision. In this regard, Ld. Counsel has argued that in some of the cylinders, they have not availed the Cenvat Credit. The said claim was, however, not made before the lower authorities. It is apparent, that the provisions of Central Credit Rules, 2004 would apply only to the capital goods cleared as scrap on which they have availed Cenvat Credit. In respect of others, the said provision may not apply. Thus, the reversal of CENVAT Credit needs to be requantified in such cases. Accordingly, for the period 01/04/2012 to 27/09/2013, the matter is remanded to original Adjudicating....