No liability to pay excise duty on used capital goods

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HIGH COURT OF DELHI

Date of Decision: 29th May, 2012

CEAC NOs.11/2011

CEAC NOs.12/2011

HARSH INTERNATIONAL (KHAINI) PVT. LTD

VERSUS

COMMISSIONER OF CENTRAL EXCISE

There is no liability to pay excise duty on the used capital goods, as a consequence the goods are not liable to be confiscated. They are, therefore, liable to be released without payment of any redemption fine. Moreover, there is also no question of the appellant paying any penalty under Rule 25 of the Central Excise Rules, 2002. The capital goods if still under seizure are directed to be returned to the appellant without payment of any redemption fine. The question of law is answered in the negative and in favour of the assessee.