Cenvat reversal on capital goods on sale

[Krishan Gopal]

We have imported a machine from Japan on April 2013 and  we want to sell it in February 2014. Please suggest which date we have to take for cenvat reversal i.e.bill of entry date, factory receiving date or cenvat credit date.

Thanks,

K.Gopal

9911052902

AI Summary

CENVAT Credit Reversal: Date of Availment or Capitalization Applies, Rule 3(5A)(a) Details Reduction for Capital Goods A query was raised regarding the appropriate date for reversing CENVAT credit upon the sale of a machine imported from Japan. The response clarified that CENVAT credit should be reversed from the date of availment or capitalization, whichever is earlier. According to Rule 3(5A)(a), if capital goods are removed after use, the manufacturer must pay an amount equal to the CENVAT credit taken, reduced by specified percentage points per quarter. For non-computer capital goods, the reduction rate is 2.5% per quarter. If the calculated amount is less than the duty on transaction value, the duty amount should be paid.