AUDIT QUARY

[SNEHAL SHAH]

R/sir, X company Sale Machine with out duty payment to Y ( After use 5 years ) but on this machine x company not taken any cenvat credit .This procedure is correct or not ? If any duty liability imposed on X or Y company . Please guide for this . snehal shah

AI Summary

No Duty Liability for Machine Sale After 5 Years Without Cenvat Credit Claim by X Company to Y Company. An individual inquired whether a company, X, which sold a machine to company Y without duty payment after five years of use, would incur any duty liability, given that no Cenvat credit was claimed on the machine. The response clarified that since X company did not avail the Cenvat credit, there is no duty liability imposed on either X or Y company.