Output service provider not liable to pay any amount on removal of capital goods as scrap

Bharti Infratel Limited Vs Additional Director General (CESTAT Delhi)

Facts- The appellant removed certain capital goods, which were waste/ scrap, after their usage. At the time of removal, neither credit was reversed nor any amount was paid as the appellant believed that there was no requirement of payment/ reversal by an output service provider under rule 3(5A) of the Cenvat Credit Rules.

The proceedings were initiated by the department with respect to the capital goods which were removed as scrap

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