2014 (3) TMI 310 - AT - Central Excise

Reversal of credit equivalent to CENVAT credit - Held that - on clearance of the capital goods after put to use the credit is allowed on reversal on the transaction value - Following decision in in Cummins India Ltd. 2007 (3) TMI 589 - CESTAT, MUMBAI and Commissioner Central Excise Commissionerate Versus M/s Raghav Alloys Ltd. 2010 (4) TMI 294 - PUNJAB & HARYANA HIGH COURT - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT MUMBAI ruled in favor of the appellant, setting aside the demand for reversal of credit on capital goods. The decision was based on previous judgments affirming that credit is allowed on reversal of transaction value upon clearance of capital goods after use. The appeal was allowed with consequential relief, and the stay application was disposed of.