9911796707
TMI Blog2012 (11) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... unts involved, we take up the appeal for disposal. 2. The brief facts of the case are that the appellants are engaged in the manufacture of excisable products viz. Stainless Steel Bars and Rods, Stainless coil, Stainless Steel Bright Bar, Stainless Steel Wire falling under Chapter heading 72 and 73 of the First Schedule to the Central Excise Tariff Act, 1985 and are also availing the facility of cenvat credit under the Cenvat Credit Rules, 2004. During the course of audit, it was noticed that the appellant had cleared capital goods i.e. old and used forged hammer having capacity of 3 ton. It is the allegation that appellant had not paid any amount equal to duty on the clearance of the goods under Rule 3 (5A) of the Cenvat Credit Rules, 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .1 Ld. counsel would draw our attention to the findings recorded by the first appellate authority. It is his submission that the first appellate authority has not considered the provisions of Cenvat Credit Rules, 2004 in its entirety. It is his submission that the capital goods were undisputedly purchased in the year 1994. He would draw our attention to invoice No.038 dated 31.10.94 of forging machinery manufacturing company, Ludhiana vide which the capital goods were received by the appellant. 4.2 It is his submission that there is no dispute that the appellant had put to use the said forging machine. He would submit that as per the provisions of Rule 3(5) of Cenvat Credit Rules, 2004, the appellant is eligible to reduce the cenvat credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Cenvat Credit Rules, 2004 and more specifically provisions of sub rule 5 of Rule 3. The said sub rule is reproduced herein under: "5) When inputs or capital goods, on which cenvat credit has been taken, are removed as such from the factory, or premises of the provider of output service, the manufacturer of the final products or provider of output service, as the case may be, shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover of an invoice referred to in Rule 9; Provided that such payment shall not be required to be made where any inputs 5[or capital goods] are removed outside the premises of the provider of ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entire cenvat credit taken by the appellant would be 'nil'. This would mean that the appellant is not required to reverse any cenvat credit, if the appellant removes the capital goods on which cenvat credit is taken and is in use, after the ten years of its use in his factory premises. We find strong force on the contentions raised by the ld. counsel and also find it from records that when the appellant cleared the said capital goods on 18.03.09, he had specifically mentioned that it is "old and used forged hammer, capacity 3 ton". If that be so, the question of reversal of cenvat credit taken on the said capital goods will not arise. 10. The first appellate authority has held that the provisions of payment of 2.5% of the cenvat credit for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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