M/S. Sundaram Fasteners Ltd vs Commissioner Of Central Excise, ...
- CitationAppeal No.10/2007 (M.IV), dated 31.01.2007 passed by the Commissioner of Central Excis
Ratio decidendi
The rule this decision rests on
Where capital goods on which CENVAT credit was availed are, after use, cleared on a transaction value determined by applying the depreciation formula prescribed in CBEC Circular No. 643/34/2002-CX dated 01.07.2002, the assessee cannot be directed to reverse the capital goods credit so availed, the principle having been settled by the High Court decisions the Tribunal follows, and this holding is applied to the facts of the case since the rate of depreciation and the computation were not in dispute.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
[Arising out of Order-in-Appeal No.10/2007 (M.IV), dated 31.01.2007 passed by the Commissioner of Central Excise (Appeals), Chennai]
M/s. SUNDARAM FASTENERS LTD. APPELLANT
Versus
COMMISSIONER OF CENTRAL EXCISE, CHENNAI-IV RESPONDENT
Appearance:
For the Appellant Shri M. Kannan, Adv.
For the Respondent Shri L. Paneerselvan, AC (AR)
CORAM:
Honble Shri D.N. Panda, Judicial Member
Date of hearing/decision 15-07-2015
FINAL ORDER NO. 40961 / 2015
While assessee says that capital goods availing capital goods credit when cleared shall be liable to duty on the transaction value giving due regard to the depreciation norm prescribed by CBEC Circular No.643/34/2002-Cx., dated 01.07.2002, Revenue negates such proposition the same on the ground that the capital goods credit availed should be reversed to save the Revenue loss.
2. above issue having been resolved by two High Courts and the first judgment came on 20.04.2010 in the case of Commissioner of Central Excise, Chandigarh Vs Raghav Alloys Ltd. reported in 2011 (268) E.L.T.161 (P&H) and the second judgment came on 22.10.2010 in the case of Commissioner of Central Excise, Salem Vs Rogini Mills Ltd., reported in 2011 (264) E.L.T.367 (Mad.), there shall be no further controversy on the issue.
3. In view of the above and also the Boards Circular being dealt by the above judgements, appellant cannot be directed to reverse the capital goods credit when capital goods upon use were depreciated and such depreciated capital goods cleared declaring transaction value thereof applying the depreciation formula as per Boards Circular. Since the rate of depreciation claimed is not in question nor the calculation made by the appellant is in question, appeal is allowed.
(Dictated and pronounced in open court)
(D.N. PANDA) JUDICIAL MEMBER
ksr 08-08-2015
DRAFT Remarks
I II III
Date of dictation 15.07.2015
Draft Order - Date of typing 24.07.2015 07.08.2015
Fair Order Typing 08.08.2015
Date of number and date of dispatch
4 E/00240/2007
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