CENVAT Credit Not Reversed for Power Plant Capital Goods Sale; Liability Tied to Physical Removal, Not Ownership Transfer. (5A.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Reversal of CENVAT Credit - removal of capital goods as such - power plant - Rule 3(5A) of Cenvat Credit Rules, 2004 - The sale of goods or transfer of ownership of the goods from the seller to the buyer, is not the criteria to cast duty liability on the manufacturer/seller of excisable goods. What is important is the physical removal of excisable goods from the factory of the manufacturer. - Both the appellants were not required to reverse the cenvat credit on sale of capital goods, as part of running power plant - AT....