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TMI Blog2013 (11) TMI 1123X X X X Extracts X X X X X X X X Extracts X X X X ..... of penalty by M/s K. Three Pvt. Ltd. and M/s L.G. Electronics waived for hearing of their appeals and recovery stayed till the disposal of the appeals – Stay granted. - Appeal No. 56252 of 2013 (SM) - Stay Order No. 57651-57652/2013 - Dated:- 15-5-2013 - Mr. Rakesh Kumar, J. For the Appellant: Shri Bimal Jain, Advocate For the Respondent: Mrs. S. Bector, Authorized Representative (DR) ORDER Per. Rakesh Kumar :- The facts leading to these appeals and stay applications are, in brief, as under. 1.1 The appellant are manufacturer of plastic components for T.V. sets for L.G. Electronics. M/s L.G. Electronics imported some moulds and dies in May 2002 and took the capital goods Cenvat credit in respect of the same. Howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es in respect of stay applications. 3. Shri Bimal Jain, C.A., the learned Counsel for both the appellants, pleaded that since at the time when the capital goods had been received by M/s L.G. Electronics, in terms of the provisions of Rule 3 (4) of Cenvat Credit Rules, 2002 on removal of capital goods as such the amount equal to the Cenvat credit originally taken was required to be reversed, irrespective of whether the capital goods were removed without any use or after some use, that at that time there was no provision for reduction of the credit to be reversed @ 2.5% per quarter, that this provision came only w.e.f. 14/11/07, that in terms of the Board s Circular No. 816/13/2005 CX dated 16/6/05 M/s L.G. Electronics were required to reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Cenvat credit reversed by M/s L.G. Electronics. She, therefore, pleaded that the appellant do not have prima facie case in their favour. 5. I have considered the submissions from both the sides and perused the records. 6. Prima facie, I am of the view that the question of availability of capital goods Cenvat credit to M/s K. Three Pvt. Ltd. in respect of the used moulds and dies received by them from M/s L.G. Electronics cannot be determined by reviewing the assessment at the supplier s end, unless the assessment at the end of M/s L.G. Electronics has been reviewed by the jurisdictional Central Excise authorities. In any case, it is a Revenue neutral situation. In view of this, the requirement of pre-deposit of Cenvat credit demand fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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