9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (3) TMI 702 - AT - Central ExciseWaiver of predeposit of duty - applicant removed the capital goods as such without reversal of the credit from the applicant s other units - Held that - On perusal of the appeal, most of the capital goods were used approximately within a span of 3 to 6 months. Hence prima facie these decisions relied upon by the learned advocate would not apply to this case. In those decisions, the capital goods were cleared after a long use and the dispute was whether the credit initially taken is to be reversed or whether the credit of transaction value is to be reversed - Conditional stay granted.
Issues: Application for waiver of predeposit of duty for the period 2007-08 due to removal of capital goods without reversal of credit.
Analysis: 1. The applicant filed an application seeking waiver of predeposit of duty amounting to Rs.12,08,088 for the period 2007-08. The impugned order revealed that the applicant removed capital goods without reversing the credit from the applicant's other units. 2. The appellant's advocate argued that as per settled law, reversal of credit is not mandatory for the removal of used capital goods. He relied on the decision of the Bombay High Court in Commissioner Vs Cummins India Ltd. (2009) and contended that the demand was time-barred due to revenue-neutrality. 3. On the contrary, the Revenue's representative highlighted specific dates of machinery receipt and removal, asserting that the applicant did not clear used capital goods but removed them as such, necessitating credit reversal. Referring to the decision of the Larger Bench of the Tribunal in Modernova Plastyles Pvt. Ltd. Vs CCE Raigad (2008) and the Madras High Court judgment in CCE, Salem Vs Rogini Mills Ltd. (2011), the Revenue argued in favor of credit reversal. 4. After considering both arguments and examining the details provided, it was observed that most capital goods were used within a short span of 3 to 6 months. The Tribunal found that the decisions cited by the appellant's advocate were not directly applicable to the current scenario where goods were cleared relatively quickly. Consequently, the applicant was directed to make a pre-deposit of Rs.3,00,000 within six weeks. Upon compliance, the balance duty, interest, and penalty would be waived, and recovery stayed during the appeal's pendency, with a reporting deadline set for 28.11.2013. The matter was instructed to be placed before a Single Member Bench for further proceedings.
|
