Reverse in scrap of Asset

[Asked by Guest]

Dear Sir,

If we are scrap out our assets like our used machinery than on which amount we need to pay excise duty.

On Transaction value or on after reduction of 2.5% per quarter ?

We are removing as a scrap old used machinery not removing as such.

Regards

Swapneswar Muduli

AI Summary

Duty on transaction value for capital goods sold as scrap, despite quarter-wise reduction allowances, governs payable excise duty.
Where capital goods are cleared as waste or scrap, duty must be paid on the transaction value at which they are sold or cleared. A quarter-wise reduction mechanism for used capital goods exists, but a proviso makes duty payable equal to duty on transaction value if the reduced calculation produces an amount less than duty on transaction value. If realization exceeds residual reduced value, duty is payable on that realization; reusable machinery is subject to cenvat credit rules for clearance.