We are selling old oxygen Injection unit and other equipments to our parent unit, which is not used by us. The same were received around 11 to 12 years back. Whether, we have to pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by 2.5% depreciation per quarter calculated by straight line method as per sub rule (5A) of Rule 3 of CCR, 2004 or Excise duty to be paid on transaction value at the time of removal of capital goods.
Whether, we have to obtain any certificate from chartered Accountant before sale of Capital goods from the factory?
Debate on old capital goods sale: Pay excise duty on transaction value as scrap, not reduced by depreciation. No CA certificate needed. A discussion on the sale of old capital goods, specifically an oxygen injection unit, raised questions about the applicability of CENVAT credit and excise duty. The main query was whether to pay a reduced amount based on depreciation or duty on transaction value. Responses suggested that due to the age of the goods, depreciation does not apply, and duty should be paid on transaction value, labeling the goods as scrap. It was also noted that no certificate from a chartered accountant is necessary. Clarification was sought on whether CENVAT credit was utilized when initially received. (AI Summary)
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