9911796707
TMI Blog2024 (10) TMI 618X X X X Extracts X X X X X X X X Extracts X X X X ..... ue of the impugned order are that in the course of audit of M/s Raipur Forging Pvt. Ltd., it was found that they had purchased capital goods worth Rs. 1,61,46,428/- from M/s Ajmera Steels Pvt. Ltd. which were originally removed from the premises of M/s Stainless India Ltd. [Respondent] Based on this information, the Superintendent of Central Excise, Range - III, Jodhpur, by letter dated 19.11.2015 requested the respondent to pay an amount under Rule 3 (5A) (ii) of Cenvat Credit Rules, 2004 [CCR] as the amount to be paid if capital goods on which CENVAT credit is taken are removed from the factory. Respondent did not respond and therefore, a show cause notice dated 18.04.2017 was issued to the respondent which culminated in the issue of orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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% for each quarter : Provided that if the amount so calculated is less than the amount equal to the duty leviable on transaction value, the amount to be paid shall be equal to the duty leviable on transaction value. (b) If the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount equal to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Chartered Accountant for the respondent submitted that on many of the goods which were sold by the respondent, it had not availed capital goods CENVAT credit at all because during the relevant period those goods were not eligible for capital goods CENVAT credit. If the submission of the learned Chartered Accountant is correct, the demand under Rule 3 (5A) cannot cover such goods on which the respondent had not taken any CENVAT credit at all. 9. In view of the above, we find that this is a fit case to be remanded back to the Commissioner (Appeals) to examine Rule 3 (5A) of CCR as applicable during the relevant period and also examine what is value of the capital goods on which the respondent had taken capital goods CENVAT credit. 10. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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