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TMI Blog2024 (11) TMI 988X X X X Extracts X X X X X X X X Extracts X X X X ..... ow Section cleared as such without any manufacturing process carried on such M.S. Window Section - shortage of 30.123 MT of Billets which was used in the furnace and subsequently dismantled and cleared in June, 2008. Whether after use of plant and machinery removal of the same as used plant and machinery attract duty by deducting the depreciation as provided in Rule 3(5) of Cenvat Credit Rules or will be treated as removal of waste and scrap of capital goods attracting duty on transaction value in terms of Rule 3(5A) of Cenvat Credit Rules? - HELD THAT:- It is found that merely because the plant machinery was sold in the Metric Ton and the buyer is the scrap dealer that alone cannot establish that the plant and machinery sold by the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit of Rs.19,86,317/-stands reversed/ paid by the appellant. On this ground the demand of Rs.19,86,317/- and consequent penalty and interest if any shall not sustain. Whether demand of Cenvat Credit is correct on the ground of shortage of 30.123 MT of Billets which was used in the furnace and subsequently dismantled and cleared in June, 2008? - HELD THAT:- It is found that the stand of the appellant is that at the time of use of billets in the foundation of the furnace, they have reversed the Cenvat Credit. However, no evidence in respect of such reversal was brought here. Therefore, this factual aspect also needs to be verified by the adjudicating authority while passing denovo order. The matter relates to the demand of Rs.54,38,305/- and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e payment of duty by adopting the depreciation method. Hence, the appellant have rightly paid an amount of Rs.6,33,033/-. It is his submission that there is no evidence that the appellant have cleared an old and used plant and machinery as waste and scrap. Therefore, the duty demand on such old and used plant machinery cannot be demanded on its transaction value. He further submits that even though, the appellant is liable to pay the amount as demanded by the revenue but at the relevant time there was no recovery mechanism which has come subsequently by Notification No.3/2013-CE (N.T.) dated 01.03.2013. Therefore, for this reason also the demand is not recoverable 2.1 As regard the demand of Rs.19,86,317/-on removal of M.S. Window Section a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur M/s GKN Driveline India Ltd v. CCE Delhi III Udaipur Cement Works Ltd. v. Commissioner Central Goods Service Tax 3. Shri Rajesh R Kurup, Ld. Superintendent (AR) appearing on behalf of the revenue reiterates the findings of the impugned order. He submits that since the appellant have sold the old machinery by weight i.e. in Metric Ton and the buyer is a scrap dealer, it is clear that the plant and machinery sold by the appellant are in the form of waste and scrap. Hence, in terms of Rule 3 (5A), the appellant is liable to pay duty on the transaction value and not on the depreciated value. 4. We have carefully considered the submissions made by both the sides and perused the records. As regard the issue relates to demand of Rs.54,38,305/-, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceeding which was brought in this statute only by Notification No.03/2013- C.E. (N.T.) dated 01.03.2013. 4.1 As regard the demand of Rs.19,86,317/-on clearance of M.S. Window Section, the demand was raised in respect of the Cenvat Credit availed by appellant. However it is the admitted fact that the appellant have cleared the M. S. Window Section involving Cenvat Credit of Rs.19,86,317/-on payment of duty amounting toRs.27,93,234/-, therefore, the amount of Cenvat Credit of Rs.19,86,317/-stands reversed/ paid by the appellant. On this ground the demand of Rs.19,86,317/- and consequent penalty and interest if any shall not sustain. 4.2 As regard the demand of Cenvat Credit ofRs.1,04,249/-, we find that the stand of the appellant is that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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