2007 (3) TMI 135 - AT - Central Excise

Cenvat/Modvat - Revenue contended that appellant didn t reverse the entire amount of credit availed earlier but paid duty on the depreciated value of capital goods and accordingly demand for differential duty - Held that revenue contention was correct and allowed

Summary

The Appellate Tribunal CESTAT, Kolkata ruled that under the Cenvat Credit Rules, 2002, credit availed on capital goods must be reversed when removed from the factory. Duty should not be paid on the depreciated value of the goods. The imposition of penalty was deemed unjustified, but interest on the differential duty amount is payable. The appeal by the Revenue was allowed.