TaxTMI 
TaxTMI 
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....
CENVAT on 2nd hand CG
13 Jul 2013 
4 Replies 
1131 Views Asked by
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. (AI Summary)
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. (AI Summary)