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

CENVAT credit reversal: repayment computed by prescribed depreciation rates or transaction value when capital goods are removed.
Removal of capital goods on which CENVAT credit was taken requires payment equal to the credit taken reduced by prescribed straight line quarterly percentages (with different schedules for computers and other capital goods), but if that calculated amount is less than the duty on transaction value the duty on transaction value must be paid; clearance as waste or scrap mandates payment of duty on transaction value. If no CENVAT credit was availed, no statutory reversal is required, though documentary proof may be needed to refute a department demand based on transaction value.