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TMI Blog2013 (6) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... order-in-appeal No. 524/2006/442(RAJ)/COMMISSIONER(A)/RP/RAJ, dt.18.09.06. 2. Briefly stated facts are that during the course of audit, audit pointed out to the appellant that they removed the capital goods on which cenvat credit of the duty paid was taken by the appellant and has discharged the duty after claiming the depreciation value of the goods. According to the audit, the appellant should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Honble High Court has now settled the issue in favour of the assessee in as much as that the appellant has to pay the amount of duty on the removal of the capital goods as such after considering the depreciation and they need not reverse the amount of cenvat credit which was availed initially. 4. Ld. SDR reiterates the findings of the lower authorities. 5. On careful consideration of the su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We may respectfully reproduce the ratio of their lordships judgment in paragraph 8. 8. We have heard arguments of both the Ld. Counsel. The Tribunal has rightly noted that unlike inputs, which get consumed 100% with the same are taken up for use in relation to manufacture of finished goods, capital goods are used over a period of time. The capital goods loose their identity as capital goods only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 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 1-7-2002 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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