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TMI Blog2018 (4) TMI 656X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri M V Ravindran, Member (Judicial) Shri RV Shetty, Advocate for appellant Shri SJ Sahu, Assistant Commissioner (AR) for respondent This appeal is directed against Order-in-Appeal No: PKS/527/BEL/2010 dated 24/02/2011 passed by the Commissioner of Central Excise (Appeals), Mumbai Zone-II 2. Heard both the sides and perused the records. 3. On perusal of the records, it transpires that the issue is regarding reversal of CENVAT credit availed on capital goods and inputs, which were subsequently written off as obsolete. 4. The factual matrix, after filtering out unnecessary details, are that the appellant during the period 2001-02 to 2004-05 had closed down the unit due to discontinuance of water supply and electr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hilips Electronics (India) Limited reproduces the provisions which were brought into the statute on this point. I reproduce the said paragraph: '13. To decide the issue, we have to go through the provisions of law, which deals such a situation and Rule 3(5) of Cenvat Credit Rules, 2004 deals with the situation, which is reproduced herein as under: (5). W men inputs or capital goods, on which CENVAT credit has been taken, are removed as such from the factory, or premises of the provider of output service, the manufacturer of the final products or provider of output service, as the case may be, shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Notification No. 27/2005-C.E. (N.T.), dated 16-5-2005] (5B) If the value of any, input, or (ii) capital goods before being put to use, on which CENVAT Credit has been taken is written off fully or where any provision to write off fully has been made in the books of account, then the manufacturer shall pay an amount equivalent to the CENVAT credit taken in respect of the said input or capital goods : Provided that if the said input or capital goods is subsequently used in the manufacture of final products, the manufacturer shall be entitled to take the credit of the amount equivalent to the CENVAT Credit paid earlier subject to the other provisions of these rules. [Inserted vide Notification No. 26/2007-Central Excise (N.T.), dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the facts of this case as held by the Hon'ble Bombay High Court on Hindalco Industries Ltd. case cited supra. In case's of M/S. Kinetic Motors Co. Ltd., cited supra, Jindal Vijayanagar Steel Ltd., cited supra and AUDCO India Ltd., cited supra, this Tribunal has, time and again, held that demand of duty or reversal of Cenvat Credit cannot be made in respect of inputs or capital goods although they have become obsolete but are lying in the said factory; duty is payable only at the time of removal of such inputs. The case laws cited by the Ld. JCDR in the case of RPG Cables Ltd., cited supra is not relevant to the facts of this case. In that case it was admitted that the inputs were not physically available in the factory after be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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