2014 (7) TMI 67

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..... ssessee is required to reverse the CENVAT credit taken on clearance of the input/capital goods "as such". Admittedly, in this case when the respondent has not taken CENVAT credit therefore, they are not required to reverse any credit on these capital goods. In this set of facts, issuance of show-cause notice was not required at all. Therefore, all the proceedings initiated in the show-cause notice .....

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..... herefore, the appellants are required to pay duty on these capital goods. It was also noticed that the respondent has not taken CENVAT credit on these capital goods and they have taken the CENVAT credit later-on. It was held that when these capital goods were not available in their factory, the appellants are not entitled for the credit. Proceedings were initiated and as per the adjudication order .....

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..... s. 7. In this case, it is an admitted fact that at the time of procurement of capital goods the respondent has not taken the CENVAT credit at all. Therefore, as per the Rule 3(5) of CENVAT Credit Rules, 2004 an assessee is required to reverse the CENVAT credit taken on clearance of the input/capital goods as such . Admittedly, in this case when the respondent has not taken CENVAT credit theref .....

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