Material removed w/o duty payment

[Guest]

R/sir, We have purchase Machinery on payment of duty but we have not taken credit on this due to misplace of invoice or elseware .After using this machine 5 years we had sale w/o payment of duty on ground that we had not taken credit on this . Please guide this is correct or not . Regards, SNEHAL SHAH

AI Summary

Selling Machinery Without Duty Payment: Rule 3(5) Cenvat Credit Rules 2004 Explained; Duty Required Even Without Claimed Credit A query was raised about whether selling machinery without paying duty is permissible if CENVAT credit was not claimed due to a misplaced invoice. An expert explained that Rule 3(5) of the Cenvat Credit Rules 2004 requires duty payment upon removal of capital goods if credit was taken, but since no credit was claimed, this rule does not apply. However, duty must still be paid when removing excisable goods. Options include taking the credit and removing the machinery as is, or declaring it as scrap and paying duty on the transaction value. Another expert concurred, emphasizing duty payment to avoid legal issues.