CCE Vs. K.P.R. MILLS PVT. LTD.

JUDGEMENT

(1.) REVENUE filed this appeal against the order passed by the Commissioner (Appeals). The issue relates to the clearance of certain capital goods to their sister unit after put into use, on payment of duty on the invoice value instead of depreciated value. The adjudicating authority confirmed differential duty of Rs. 1,07,553/ - along with appropriate interest and also imposed equal amount of penalty. The Commissioner (Appeals) allowed the respondents appeal on the ground that the capital goods have been removed as such from the factory of the manufacturer and hence they have to pay an amount equal to the duty of excise which is leviable on the goods on the value determined under Section 4 of the Central Excise Act, 1944 read with Rule 3(4) of Cenvat Credit Rules, 2001, wherein he held that these provisions are not applicable to removal of used capital goods by relying the Tribunal's decision in the case of Madura Coats Pvt. Ltd. Vs. CCE : 2005 (190) ELT 450 (Tri.).

(2.) THE Ld. AR on behalf of the Revenue reiterated the grounds of appeal and submits that the lower appellate authority has not considered the Board's Circular F.No. dated 01.07.2002 and submits that S.No. 14 of the above circular clearly clarified that in respect of capital goods, depreciation will be as per the provisions of CBEC letter F.No. 495/16/1993 -Cus.VI dated 26.05.93. He further submits that the depreciation is specifically mentioned in the above circular and it should understood that it is meant for only to used capital goods. The Ld. AR relied upon the following decisions in this regard.

(3.) MODERNOVA Plastyles Pvt. Ltd. Vs. CCE, Raigad, 2008 (232) ELT 29 (Tri. -LB)