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TMI Blog2016 (11) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Cenvat Credit Rules has been amended to provide for reversal of Cenvat credit after reduction by 2.5% per quarter, however, these provisions are not applicable for the period prior to the amendment. Prior to the amendment to the relevant rules w.e.f. 13/11/07, Cenvat credit availed at the time of purchase of the capital goods is not required to be reversed when cleared after use - appeal all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se off the machine. It is also on record that the machine was sold for an amount of ₹ 5,00,000/- on which they paid excise duty to the extent of ₹ 80,000/- on the transaction value. The case of the Revenue is that at the time of clearance of capital goods on which Cenvat credit has been taken, the same Cenvat credit needs to be reversed. Since appellant failed to do so, show cause noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f. 13/11/07 [when it was specified that when capital goods are removed from the factory after use, credit is to be reversed after reducing the amount payable by 2.5% per quarter], Cenvat credit availed at the time of purchase of the capital goods is not required be reversed, if these goods are cleared after use. (i) CCE, Chandigarh vs. Raghav Alloys Ltd. reported in 2011 (268) E.L.T. 161 (P H) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal goods were put to use within the factory for a period of over three years. Subsequently the same has been cleared and duty stands paid on the transaction value. The Revenue has taken the view that the entire credit availed by the assessee needs to be reversed when the capital goods are cleared out of the factory. I note that w.e.f. 13/11/07, the Cenvat Credit Rules has been amended to provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decision of the Larger Bench in this case has also been considered by the Hon ble Punjab Haryana High Court in its decision in the case of CCE, Chandigarh vs. Raghav Alloys Ltd. (supra). Consequently, I find that the issue stands decided in favour of the appellant. Accordingly I set aside the impugned order and the appeal is allowed. ( Dictated and pronounced in open court. ) - - Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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