2015 (12) TMI 70 - AT - Central Excise

Reversal of CENVAT Credit - whether prior to 27-2-2010 the reversal of Cenvat credit availed on capital goods shall be on the written down value method or straight line method - Held that - Both sides agree that after 27-2-2010 the method prescribed was straight line. Appellant followed straight line method. But prior to that there was no express provision of law. The demand in question is ₹ 3,13,336/-. It does not appeal to common sense as to the reason why appellant shall suffer in absence of clarity in law and when ambiguity was resolved by legislature after 27-2-2010 prescribing straight line method - Decided in favour of assessee.

Summary

The dispute was about the method for reversion of Cenvat credit on capital goods before 27-2-2010. The appellant followed the straight line method. The legislature prescribed the straight line method after 27-2-2010. The appeal was allowed as there was no prejudice to Revenue by following the straight line method.