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 reversal on capital goods must be computed from the date of availment or capitalization, following prescribed depreciation rules.
Cenvat reversal is required from the earlier of the date of availment of CENVAT credit or date of capitalisation. The reversal is calculated by reducing the CENVAT credit by prescribed percentage points on a straight line basis for each quarter or part thereof from the date credit was taken; separate depreciation schedules apply to computers and peripherals and to other capital goods. If the calculated amount is less than the duty on transaction value, the duty on transaction value is payable. Clearance as waste or scrap requires payment equal to duty on transaction value.