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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 ..... inery 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. II. Demand of Rs.19,86,317/-: Whether this Cenvat Credit is liable to be denied on the ground that M.S. Window Section cleared as such without any manufacturing process carried on such M.S. Window Section. III. Demand of Rs.1,04,249/- on 30.123 MT of Billets :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. 2. Shri Paritosh Gupta, Ld. Counsel appearing on behalf of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore correctly held that the situation was completely revenue neutral. 2.2 As regard the demand of Rs.1,04,249/-, he submits that even though, there was no shortage of 30.123 MT of Billets which were used for foundation of furnace installed at factory, Cenvat Credit of Rs.1,04,249/- was reversed on 29.02.2008. On account of closure of business, the furnace was dismantled and the billets used in the foundation were cleared. This being the case, demand for reversal of credit once again is wholly without jurisdiction and authority of law. He submits that the said demand is also raised under Rule 3(5) of the Cenvat Credit Rules and relates to the period prior to December, 2008. Therefore, in view of the Notification No.03/2013-C.E.(N.T.) da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant it is observed that in some of the invoices, the description clearly shown as old and used iron scrap. However, in some of the case it is declared as old and used machinery. Sample invoices are scanned below:- From the above two sample invoices, it is observed that some of the goods were cleared as waste and scrap and some of the capital goods were cleared as old and used machinery without mentioning steel scrap. Therefore, the entire matter needs to be reconsidered after verification of facts on the basis of each invoice and wherever, the description of the capital goods is mentioned as waste and scrap, the same is liable to excise duty on the transaction value and in case of description mentioned as old and used capital goods the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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