TMI Blogsale of used Capital goods -regX X X X Extracts X X X X X X X X Extracts X X X X ..... We are selling old oxygen Injection unit and other equipments to our parent unit, which is not used by us. The same were received around 11 to 12 years back. Whether, we have to pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by 2.5% depreciation per quarter calculated by straight line method as per sub rule (5A) of Rule 3 of CCR, 2004 or Excise duty to be paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on transaction value at the time of removal of capital goods. Whether, we have to obtain any certificate from chartered Accountant before sale of Capital goods from the factory? - Reply By KASTURI SETHI - The Reply = No need of C.A.' s Certificate. Old and used capital goods being more than 11-12 years old, depreciation method will not work. So you are advised to pay duty on transact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion value and mentioned the word,'Scrap---name of capital goods.' - Reply By surya narayana - The Reply = Dear Friend, Since the duty become ZERO in terms of the rule specifying 2.5%, you need not pay duty equivalent to the amount of credit taken and that too you are clearing the equipment under the same name. Pl. try to indicate the Date of receipt and date of credit availed on the equ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipment on the relevant clearance documents. However, if clear the said equipment as scrap of Oxygen Injection unit, then you have to pay the duty on Transaction value. Best Regards Suryanarayana - Reply By Ganeshan Kalyani - The Reply = Sir the querist has mentioned that the said capital asset was not used. Whether in such situation also the reversal provision shall be applicable. Here the q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uerist is requested to clarify whether the cenvat credit was availed and utilised when the same was received a decade ago. Thanks. - Reply By KASTURI SETHI - The Reply = Dear Sir, Though the querist has not mentioned the word, 'Utilised' it appears that credit has been taken and utilised. So Sh.Surya Narayana's reply is perfect and resolves the problem of queris ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. - Reply By vinay wakde - The Reply = Thanks for your clarification in the matter. With Regards, VINAY - Reply By KASTURI SETHI - The Reply = COMMISSIONER OF C. EX., COIMBATORE Versus LAKSHMI MACHINE WORKS LTD. - 2015 (3) TMI 694 - MADRAS HIGH COURT - Reply By Ganeshan Kalyani - The Reply = Sir, I am not paid member of TMI, so cannot access the link of the cited case law. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hanks. - sale of used Capital goods -reg - Query Started By: - vinay wakde Dated:- 11-5-2016 Central Excise - Got 7 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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