excise duty demand

[Anil Jangid]

Hello Sir, I have purchased an asset for my manufacturing unit over the period of years and have not claimed excise at the time of purchase. However when i had cleared the asset in 2014 -2015 in one goal, I have not charged excise at the time of sale. The excise dept however claims that you need to pay excise duty at the time of clearance undoubtedly you have availed excise credit or not? If i don't have to charge excise at the time of clearance, Can someone provide me details or circular or notification for the same please. Awaiting,

AI Summary

Excise Duty Required on Asset Sale from Manufacturing Unit Under Rule 5A, Regardless of CENVAT Credit Claimed An individual inquired about an excise duty issue regarding the sale of an asset from a manufacturing unit without charging excise duty. The excise department insists on duty payment regardless of whether excise credit was availed. Two responses clarified that excise duty must be paid upon asset clearance, even if CENVAT credit was not claimed initially. They referenced Rule 5A of the Cenvat Credit Rules, 2004, which mandates payment of excise duty based on the asset's transaction value or CENVAT credit taken, reduced by a specified percentage. The applicability of this rule may be contested in CESTAT or courts.