2015 (10) TMI 340 - SCH - Central Excise

Admissibility of credit on capital goods (power unit) which have been sold but not removed from premises - transactions of sale of power unit and simultaneous lease of premises are wisely resorted to by the assessee as a device to avoid the tax liability on it - said purchaser, after purchasing the power unit from the assessee, has been enjoying the same as its absolute owner and has been supplying to the assessee the power generated from the said power unit on payment basis - Supreme dismissed the appeal filed by assessee against the decision of High court 2007 (12) TMI 210 - KARNATAKA HIGH COURT wherein High Court held that assessee-company lost its ownership and also control over the said power unit - Tribunal without proper appreciation of the said transactions has allowed the appeal of the assessee-company.