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TMI Blog2023 (4) TMI 1129X X X X Extracts X X X X X X X X Extracts X X X X ..... hit the adjacent steel portion of holding stand due to which the prill stand system was damaged. The surveyor vide its report No.01/367/12-13 dated 06.02.2015 reported that the damaged plants machineries were not usable. The appellant had availed the cenvat credit on such damaged capital goods. Thus the department is of the opinion that the machines so damaged on which insurance claim has been received by the appellant is to be treated as cleared after being put to use and the appellant is required to reverse the cenvat credit in terms of sub rule 5 (A) of Rule 3 of Cenvat Credit Rules, 2004 Accordingly the SCN dated 11.06.2018 was issued for demand of Central Excise Duty and reversal of cenvat credit of Rs. 29,36,123/- along with interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ELT 56 (GUJ.) STEELBIRD HI TECH INDIA LTD - 2015 (322) ELT 752 (TRI. DEL) 03. Shri Kalpesh P Shah, Learned Assistant Commissioner appearing on behalf of the Revenue reiterates the finding of the impugned order. 04. I have carefully considered the submission made by both sides and perused the records. I find that the fact of the case is not under dispute that the machine was used for almost 4 years thereafter it got damaged, the appellant also filed the insurance claim and after survey when the surveyor was satisfied the machines are not usable, the insurance company sanctioned the insurance claim. It is also fact in record that the appellant have cleared such damaged capital goods as waste and scrap. The relevant provision of sub- rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al to the duty leviable on the transaction value of such capital goods cleared as waste and scrap. 4.1 In the present case the only issue to be decided as to whether the capital goods on which the cenavt credit was availed has been cleared as usable capital goods or waste and scrap. As the facts narrated above in as much as the appellant have cleared the capital goods as waste and scrap coupled with the fact of insurance claim it is absolutely beyond doubt that the capital goods became waste and scrap as the same is not usable for the intended purposes. In such case clearance of capital goods clearly falls under Rule 3 (5A)(b) therefore, the appellant have rightly paid the amount equal to the duty leviable on transaction value of the capit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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