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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 ..... 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. Whether the capital goods on which the CENVAT credit was availed has been cleared as usable capital goods or waste and scrap? - HELD THAT:- 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 capital goods. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g aggrieved by the said Order-In-Original the appellant filed appeal before the Commissioner (Appeals) who remanded the matter to the Adjudicating Authority for limited purpose of arriving at the correct quantification of the demand. However, on merit it was held that the appellant is liable to pay cenvat amount in terms of sub - rule 5(A) of Rule 3. The appellant being aggrieved by the order of the Commissioner (Appeals) filed the present appeal. 02. Shri Dhaval Shah, Learned Counsel appearing on behalf of the Appellant submits that if the capital goods got damaged the same was not usable. Therefore, the damaged machines was sold as waste and scrap for which the invoice was also issued declaring the goods as waste and scrap. He submits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter being used, the manufacturer or provider of output services shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by the percentage points calculated by straight line method as specified below for each quarter of a year or part thereof from the date of taking the CENVAT Credit, namely:- (i) for computers and computer peripherals: for each quarter in the first year @ 10% for each quarter in the second year @ 8% for each quarter in the third year @ 5% for each quarter in the fourth and fifth year @ 1% (ii) for capital goods, other than computers and computer peripherals @ 2.5% quarter: ..... X X X X Extracts X X X X X X X X Extracts X X X X
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