Removal of capital goods - reversal of cenvat

[madhavvan n]

where service provider calims cenvat credit on capital goodsand thereafter sells them after period of 4 years is he required to reverse any cenavt credit how can service provider remove capital goods as per provisions of act since service provider cannot raise any invoice for capital goods

AI Summary

Service provider must reverse CENVAT credit on capital goods sold after four years per Rule 3(5). Consider VAT too. (5) A service provider inquired about the requirement to reverse CENVAT credit when selling capital goods after four years. The response referenced Rule 3(5) of the CENVAT Credit Rules, 1994, which mandates that the provider must pay an amount equal to the CENVAT credit taken, reduced by 2.5% per quarter since the credit was claimed. The provider should issue an invoice detailing the removal and credit reversal. Additionally, VAT provisions should be considered, and if applicable, a commercial invoice is necessary.