TaxTMI 
TaxTMI 
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
Capital goods removed after 10 years
31 Jul 2014 
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Cenvat credit repayment on removal required; adjusted by depreciation schedule or transaction-value duty applies for capital goods.
Under Rule 3(5A) of the CENVAT Credit Rules, 2004, removal of capital goods on which CENVAT credit was taken requires payment equal to the credit taken less a straight-line quarterly depreciation apportioned from the date of credit; different quarterly reduction rates apply to computers and peripherals versus other capital goods, and the calculated amount shall not be less than the duty leviable on transaction value. Clearance as waste or scrap requires payment equal to duty on transaction value. (AI Summary)
Under Rule 3(5A) of the CENVAT Credit Rules, 2004, removal of capital goods on which CENVAT credit was taken requires payment equal to the credit taken less a straight-line quarterly depreciation apportioned from the date of credit; different quarterly reduction rates apply to computers and peripherals versus other capital goods, and the calculated amount shall not be less than the duty leviable on transaction value. Clearance as waste or scrap requires payment equal to duty on transaction value. (AI Summary)