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TMI Blog2016 (9) TMI 728X X X X Extracts X X X X X X X X Extracts X X X X ..... r Assessee : Shri Amal P Dave, Advocate For Revenue: Shri J Nagori, Authorised Representative ORDER Per Dr D. M. Misra These appeals filed against OIA-33/2008-AHD-CE/ID/COMMR-A- dt 14.3.2008 passed by the Commissioner (Appeals), Central Excise-AHMEDABAD-I 2. The brief facts of the case are that the appellants are engaged in the manufacture of Rotary Screen Printing Machine and parts thereof falling under CH 84 87 of CETA, 1985. On the basis audit observation, Show Cause/Demand Notice was issued to the appellant on 22.6.2007 alleging that even though the appellant has sold their plant and machinery to M/s Technova Imaging Systems (P) Ltd against commercial Invoice dt 30.6.2006 for ₹ 7,85,00,000/- and possession th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aka in the case of CCE, Belgaum Vs Associated Cement Co Ltd 2009(236)ELT.240 (Kar.) and upheld by the Hon ble Supreme Court by dismissing the appeal reported as Associated Cements Co Vs CCE - 2015(322) ELT. A175(SC). He has further submitted that the said decision has been followed by the Tribunal in the case of in the case of J K Paper Mills Vs. CCE,C ST, Bhuveneshwar reported in 2014(309)ELT.359 (Tri. Kol). Further, responding to the issue that since the goods are sold after its use in the factory, the Ld AR submitted that the depreciated value of the plant and machinery should be considered for reversal of the Cenvat Credit and not the value at which the same were procured in view of the decision of the Larger Bench of this Tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of the considered opinion that the Tribunal without application of mind and without proper appreciation of the said transactions in the light of the relevant provisions of the Central Excise Act and the Rules has allowed the appeal of the assessee-company and set aside the Order-in-Original passed by the Commissioner of Central Excise, Belgaum. In the circumstances, we answer the above question of law in the negative and against the assessee. 6. The aforesaid ratio of the Hon ble Karnataka High Court has been followed in J K Paper s case(supra) by this Tribunal. Also, an appeal filed by the assessee before the Hon ble Supreme Court against the said order of Hon ble Karnataka High Court, the same was dismissed. Regarding the issue of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e capital goods on which Cenvat credit has been taken are removed after being used, the manufacturer or provider of output service shall pay an amount equal to the Cenvat credit taken on the said capital goods reduced by 2.5 per cent for each quarter of a year or part thereof from the date of taking the Cenvat credit. 10. The use of capital goods is to spread over many years. A decision to the effect that assessees can bring in capital goods, use it for a few days and then remove it without reversal of any Cenvat credit taken is not consistent with the overall scheme of Cenvat credit and can lead to abuse of the scheme. Considering this aspect and the legislative history and the Circular of C.B.E. C., we are of the view that we shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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