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2015 (10) TMI 1184 - AT - Central ExciseReversal of CENVAT Credit - removal of Capital goods after use - Held that - Authorised Representative for the Revenue submits that the Respondents availed the CENVAT Credit on capital goods and at the time of clearance of the capital goods after use, they paid the duty on the transaction value. He submits that on the identical issue, Hon ble Madras High Court in the case of Commissioner of C.Ex., Salem Vs Rogini Mills Ltd - 2010 (10) TMI 424 - MADRAS HIGH COURT held that the assessee is liable to reverse the credit on the depreciated value of the capital goods. The Larger Bench of the Tribunal in the case of Commissioner of C.Ex., Hyderabad-III Vs Navodhaya Plastic Industries Ltd - 2013 (12) TMI 82 - CESTAT CHENNAI , followed the decision of Hon ble Madras High Court. - impugned order is set aside and the matter is remanded to the Adjudicating authority - Decided in favour of Revenue.
Issues:
1. Availment of CENVAT Credit on capital goods 2. Liability to reverse credit on depreciated value of capital goods Analysis: Issue 1: The Appellate Tribunal considered the matter of availing CENVAT Credit on capital goods. The Respondents had paid duty on the transaction value of the capital goods after use. The learned Authorised Representative for the Revenue argued that based on previous judgments, the Respondents should reverse the credit on the depreciated value of the capital goods. Reference was made to the decision of the Hon'ble Madras High Court in the case of Commissioner of C.Ex., Salem Vs Rogini Mills Ltd and the Larger Bench decision in the case of Commissioner of C.Ex., Hyderabad-III Vs Navodhaya Plastic Industries Ltd. The Tribunal found merit in this argument and set aside the impugned order, remanding the matter to the Adjudicating authority for a fresh decision in line with the mentioned judgments. Issue 2: The Tribunal, after considering the arguments and legal precedents, allowed the appeal filed by the Revenue by way of remand. The Cross Objection was disposed of accordingly. The decision was made in light of the judgment of the Hon'ble Madras High Court and the Larger Bench decision, emphasizing the liability to reverse the credit on the depreciated value of the capital goods. The matter was concluded with the pronouncement in court, indicating the resolution of the issues raised in the appeal and cross objection.
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