2015 (10) TMI 660 - HC - Central Excise

CENVAT Credit - Capital goods - Transfer of unutilized credit - High Court dismissed the appeal filed by Revenue holding that matter is fully covered by the judgment of Dalmia Cements Bharat Ltd. v. CCE Tiruchirapalli 2007 (11) TMI 211 - CESTAT CHENNAI and no liability arises to reverse Cenvat credit availed by the CESTAT since there was no physical removal of such goods. The appeal was filed against the decision of Tribunal 2015 (1) TMI 1131 - CESTAT BANGALORE wherein tribunal held that in the case of leasing out of the factory to another company no liability arises to reverse CENVAT credit since there was no physical removal of such goods.

Summary

The Karnataka High Court dismissed the revenue's appeal challenging the CESTAT order, as both parties agreed that no liability arises to reverse Cenvat credit without physical removal of goods. The appellant was given the opportunity to move an application for review of the order before the Tribunal if the law permits.