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Capital Goods removal after 10 years usage to our Own unit II - under excise invoice with zero duty -

Central Excise - Started By: - venkataraman swaminathan - Dated:- 2-4-2016 Last Replied Date:- 5-4-2016 - Dear sir,We removed one capital goods ( Machine) to our own Unit , Unit 2 ( ie. from Unit 1 to Unit 2 ) . The said machine is more than 10 years from the date of credit taken . Hence we cleared this CG under our excise invoice with a value of ₹ 5 lacs and in the invoice we printed more than 10 years & no duty applicable .Not for sales /stock transfer only. Now audit raised audit po .....

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le 3 (5) Provided also that if the capital goods on which CENVAT credit has been taken are removed after being used, the manufacturer or provider of output service shall pay an amount equal to the CENVAT credit taken on the said capital goods reduced by 2.5 per cent for each quarter of a year or part thereof from the date of taking the Cenvat Credit. In case of stock transfer excise is applicable. Provided also that if the capital goods on which CENVAT credit has been taken are removed after bei .....

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cited by you. Please have a re-look. Thanks. - Reply By Rajagopalan Ranganathan - The Reply = Sir, If you remove the capital goods used for 10 years or more the credit availed is to be reduced @ 2.5% per quarter of use and the same will bee 100% after 10 years. Therefore when you remove the capital goods after using the same for 10 years according rule rule 3 (5A) of Cenvat Credit Rules, 2004 the cenvat credit to be reversed will be nill. However when you transfer the used capital goods to your .....

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