AUDIT QUARY

[Guest]

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

[NANDA H.L.]

If X company not aviled the Cenvat Credit, duty liability will not arise on X or Y company.

AI Summary

Cenvat credit absence prevents duty liability on seller or buyer when used machinery is sold without duty payment. If the selling manufacturer did not avail Cenvat credit on the machine, no duty liability arises on either the seller or the purchaser when the used machine is sold after years of use.