Reversal of CENVAT Credit for Capital Goods Removed as Scrap Not Required, Per CENVAT Credit Rules, 2004.

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....Reversal of CENVAT Credit - capital goods - removal of equipment as waste / scrap - It is not contemplated, either in Finance Act, 1994 or in general commercial usage, that capital goods should be in perpetual operation. The absence of such condition in CENVAT Credit Rules, 2004 reflects this common understanding that capital goods are dutiable on procurement and that, unlike the availment of credit of duties suffered on inputs, credit thereof is permitted at certain specified stages and, that too, only twice. - AT....