Excise duty on Capital Goods

[RAM SHARMA]

Dear Experts,We have purchased capital goods before 10 years and availed cenvat credit on that capital goods. Now we want to remove as such this capital goods. Whether we will charge excise duty on this capital goods ?Thanks

AI Summary

Understand Excise Duty on Capital Goods Removal After 10 Years: Rule 3(5A) of CENVAT Credit Rules Explained A user inquired about the excise duty implications when removing capital goods after ten years, having previously availed CENVAT credit. Experts advised that under Rule 3(5A) of the CENVAT Credit Rules, 2004, the duty payable is the higher of the reduced CENVAT credit or the duty on transaction value. If the goods are cleared as scrap, Rule 3(5A)(b) applies, requiring duty on transaction value. If no CENVAT credit was availed, no reversal is necessary, but documentation is needed to prove this to avoid duty on transaction value.