2016 (10) TMI 1018 - AT - Central Excise

Reversal of CENVAT credit - clearance of capital goods after use and no removal as such - CENVAT credit taken on such capital goods is allowed on a graded scale w.e.f. 13.11.2007 - Held that - Proposition of the appellant is correct on both counts as not cleared as such as well as Legislature has not intended the denial prior to 13.11.2007 - reliance placed in the case of Commissioner Central Excise Commissionerate Versus M/s Raghav Alloys Ltd. 2010 (4) TMI 294 - PUNJAB & HARYANA HIGH COURT , where on similar issue it was held that Insertion of proviso w.e.f. 13.11.2007 makes it clear that there is difference between machines cleared without putting into use and cleared after use - CENVAT credit allowed - appeal allowed - decided in favor of assessee.

Summary

The Appellate Tribunal CESTAT, Chennai allowed the appeal stating that used capital goods cleared prior to 13.11.2007 are not required to reverse CENVAT credit. The decision was supported by a judgment of the Punjab and Haryana High Court.