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TMI Blog2018 (7) TMI 1711X X X X Extracts X X X X X X X X Extracts X X X X ..... vat Credit on moulds and dies cleared to the job worker - credit allowed. CENVAT Credit - subsequent reduction in price of inputs by the supplier by issuance of debit notes - Held that:- It is not the case of Revenue, in debit notes the supplier had reduced the duty component of said reduced price. In terms of Rule 3 of Cenvat Credit Rules, 2004, the assessee is entitled to take Cenvat Credit of duty paid on inputs - credit allowed. CENVAT Credit - old capital goods which were cleared after use on payment of duty - Held that:- Admittedly, the capital goods in question has been put to use by the appellant and after use of the capital goods, the said capital goods has been cleared by the appellant on payment of duty on transaction value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 18,90,380/-. (b) Cenvat Credit sought to be denied as the appellant has procured inputs and paid duty thereon took Cenvat Credit but later on the price of the goods procured by the appellant were reduced by the supplier, consequently, it was sough that excess of Cenvat Credit is not entitled to the appellant and the same is required to be reversed to the tune of ₹ 20,23,688.67/-. (c) Cenvat Credit sought to be denied on the capital goods which has been cleared on payment of duty on transaction value whereas the Revenue sought to reversal of Cenvat Credit taken by the appellant on the said capital goods as such to the tune of ₹ 9,16,427/-. (d) Cenvat Credit sought to be denied on the inputs which has been cleare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , he is eligible for availment of Cenvat Credit of duty paid on the same. Further, the manufacturer of the goods is required to pay Central Excise duty on the goods manufactured. Incidentally, in the present case, the manufacturers of moulds and the legal entity eligible to avail Cenvat Credit of duty so paid is one and the same, on following all the provisions of law, the situation emerges that the appellant is required to debit their Cenvat Account for payment of Central Excise duty on the moulds manufactured by them and removed to the job-worker under said provisions of Rule 4(5)(b) and further they are eligible to take Cenvat Credit of the same duty paid. Therefore, I find that this situation is Revenue neutral. I therefore, agree with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee is required to pay duty on the capital goods on transaction value, which the appellant has already paid. Therefore, the reversal of Cenvat Credit is not required. (d) Denial of Cenvat Credit on inputs which has been scraped: - The case of the Revenue is that the said inputs were not used by the appellant, therefore, they are required to reverse the Cenvat Credit on the said inputs. We find that the said inputs are not usable by the appellant, therefore the same has been cleared as scrap on which the appellant had paid duty. In that circumstances, the appellant is not required to reverse the Cenvat Credit. (e) Denial of Cenvat Credit on inputs found during the physical verification, the said issue has not been contested b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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