Capital goods removed after 10 years

[SANDESH SHINDE]

Dear Sir,

Is excise duty payable on capital goods removed after 10 years,if yes pls give us any reference regarding this,pls explain, thanks and regards

AI Summary

Excise Duty on Capital Goods: Rule 3(5A) of CENVAT Credit Rules Clarifies Payment After 10 Years of Use. A query was raised regarding the excise duty payable on capital goods removed after 10 years. Two responses were provided. The first response advised checking specific rules within the CENVAT Credit Rules, 2004, which have been amended over time. The second response detailed Rule 3(5A) of the CENVAT Credit Rules, explaining that if capital goods, on which CENVAT credit was taken, are removed after use, an amount equal to the reduced CENVAT Credit must be paid, calculated by a specified percentage for each quarter. If cleared as waste or scrap, duty on the transaction value must be paid.