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TMI Blog2010 (4) TMI 294X X X X Extracts X X X X X X X X Extracts X X X X ..... the Respondent has paid correct amount of duty. 2. The Respondent is engaged in the manufacture of Non-Alloy Steel Ingots. The Respondent in the year of 1994 purchased an Induction Furnace and took credit of Rs. 1.30 Lac i.e. equal to duty paid on the said Induction Furnace. The Respondent used the said machinery till 2003 and sold the same in May' 2003 after payment of duty of Rs. 32,000/- i.e. 16% on the sale price Rs. 2,00,000/-. The Respondent paid duty on the transaction but the Revenue formed an opinion that Respondent should pay duty equal to Cenvat Credit availed at the time of purchase of the machinery. On the basis of this opinion, the Revenue issued a Show Cause Notice raising the demand of differential amount of credit i.e. Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er a two member bench of Tribunal could have adopted an interpretation of the phrase "as such" which is different from the interpretation given by a Larger Bench of the Tribunal in the case of Modernova Plastyles Private Limited vs. CCE, Raigad reported as 2002 (232) ELT 29 (LB)? 6. The Ld. Counsel for the Revenue contended that the Tribunal has wrongly distinguished decision of the Lager bench of the Tribunal in the case of Modernova Plastyles Private Limited vs. CCE, Raigad reported as 2002 (232) ELT 29 (LB) wherein the Tribunal has held that expression as such has to be interpreted as commonly understood, which is in the "original form" and "without any additional alterations or modifications". 7. Per contra, Counsel of the Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treated as machines cleared as such. With effect from 13.11.2007, a proviso has been added to Rule 3 (5) of the Cenvat Credit Rules providing that if the capital goods on which Cenvat credit has been taken are removed after being used, the manufacturer shall pay the amount equal to Cenvat Credit taken on the said capital goods reduced by 2.5% for each quarter of year or part thereof from the date of taking the Cenvat Credit. The Board has also in the Circular dated 01.07.2002 clarified that in the case of clearance of goods after being put into use, the value shall be determined after allowing the benefit to depreciation as per rates fixed in Boards' Letter dated 26.05.1993. The Respondent has utilized the machinery for nine years and paid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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