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TMI Blog2013 (3) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... re was no provision in Rule 3 of the CENVAT Credit Rules for reversal of credit based on depreciated value - Held that:- As deccided in CCE, Salem Vs. Rogini Mills Ltd. [2010 (10) TMI 424 - MADRAS HIGH COURT] the said provision requiring reversal of the entire credit taken at the time of receipt of the capital goods in the factory cannot be applied to a situation where capital goods are cleared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods which were received in their factory during the year 2000. After use of the capital goods for a few years the capital goods were shifted from the factory in which it was received to another factory of the appellant during April 2005. At the time of removal they reversed CENVAT credit on the depreciated value as determined by them which was Rs.16,65,587/-. Revenue was of the view that the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to a situation where capital goods are cleared after use for a few years. In the said decision, the payment of excise duty based on transaction value was approved. In the instant case, the transfer of the capital goods is from the one factory of the appellant to another factory of the appellant and as such there is no transaction value. This is one of the reasons cited in the impugned order for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asis of transaction value of the used capital goods or written down value on such goods. Therefore, the only provision that was applicable was Rule 3(5)(c) of the CENVAT Credit Rules, 2004. He also points out the decision of the Larger Bench of the Tribunal in the case of Modernova Plastyles Pvt. Ltd. Vs. Commissioner 2008 (232) ELT 29 (Tri. LB). 5. Considered the arguments on both sides. Follow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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