CENVAT on 2nd hand CG

[Sujitkumar Rasal]

We are selling capital goods to client at Chhattisgarh. The clients told they can't pay the duty b'coz they are not permitted to take CENVAT credit on 2nd hand Capital goods at Chhattisgarh. It is true?????

Sir/Madam,

Please reply me quick....

[rakshit verma]

There is no restriction for availing cenvat credit on old duty paid capital goods throughout India.There is a possibility that buyer might have not been registered with the department.

regards

Rakshit

Mob: 09810525780

[Shyam .]

Hi,

As per Cenvat Credit Rule3(5A) Capital goods- removal after partial use or waste /refuse. Amount payable - Higher of (reduced credit or Ed on TV).

And, As per rule 3(6), An Amount paid under subrule 3 (5A) shall be eligible as cenvat credit to the buyer.

So far, CCR is eligilble on partial use machine. 

Thanks,

Shyam

[Sujitkumar Rasal]

Thank you very much Rakshit & Shyam Sunderji...............

 

RSS

[Sujitkumar Rasal]

But, their is any special Rule / Notification / scheme made in favour of Chhattisgarh??????

Please reply me, ASAP...................

 

Rasal Sujitkumar S.

+91 9223 444 755

[email protected]

AI Summary

CENVAT credit on second hand capital goods remains allowable; CCR provides for reduced credit mechanism and buyer eligibility.
There is no territorial restriction on availing CENVAT credit on previously duty paid second hand capital goods; buyer eligibility, including proper registration, is required. Under the Cenvat Credit Rules the transfer of partially used capital goods attracts an amount payable (higher of reduced credit or duty on transaction value), and any amount paid under the partial use removal rule is eligible as CENVAT credit to the buyer, permitting credit on partially used machines.