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TMI Blog2014 (12) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... ken but are cleared as waste and scrap after its long usage in the factory of manufacture. 2. Shri G.P. Thomas (AR) appearing on behalf of the Revenue relied upon the judgment of Madras High Court in the case of CCE Salem vs. Rogini Mills Limited [2011 (264) ELT 367(Mad.)] to argue his point that at the time of removal of capital goods after use the quantum of credit taken is required to be reversed based on depreciated value of the capital goods, as per the provisions of Rule 3(4) (c) and 3(5) of Cenvat Credit Rules,, 2004. 3. Shri S. Suriyanarayanan, (Advocate) appearing on behalf of the respondents on the other hand relied upon the following case laws to put forth his view point that at the relevant time capital goods removed as such w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l capital goods, on which credit is taken, is cleared as waste on payment of excise duty based on transaction value of the scrap sold. It is observed from the judgment of Punjab & Haryana High Court in the case of CCE, Chandigarh vs. Raghav Alloys Limited - [2011 (268) ELT 161 (P&H)] that during the relevant period no cenvat credit was required to be reversed if the capital goods are cleared after utilisation and are not cleared as such. In this regard Para 8 of this judgment is relevant and is reproduced below:- 8. We have heard arguments of both the Ld. Counsel. The Tribunal has rightly noted that unlike inputs, which get consumed 100% with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d duty on transaction value. The machine cleared after putting into use for nine years cannot be treated as Cleared 'as such'. Insertion of proviso w.e.f. 13-11-2007 makes it clear that there is difference between machines cleared without putting into use and cleared after use. The Bombay High Court has upheld the view of the Tribunal in the case of Cummins India Limited v. CCE, Pune-III, 2007 (219) E.L.T. 911 (Tri. - Mumbai). The Tribunal in the case of Nahar Fibres has also dismissed Appeal of the Revenue and there is nothing to show that the said decision of the Tribunal has been set aside by any Court. In the present proceedings there is no evidence relied upon in the show cause notice that part of capital goods cleared was not put to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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