TaxTMI 
TaxTMI 
Material removed w/o duty payment
13 Jan 2011 
4 Replies 
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Duty on removal of excisable goods: payment required on clearing machinery even if Cenvat credit was not availed.
Removal of excisable capital goods after use requires duty payment on clearance even if Cenvat credit was never availed; Rule 3(5) applies only where Cenvat credit has been taken and so cannot be used to justify duty-free removal. Options are to avail credit and follow the reversal mechanism on removal or declare the asset as scrap and pay duty on the transaction value; merely stating that credit was not availed does not relieve the duty obligation. (AI Summary)
Removal of excisable capital goods after use requires duty payment on clearance even if Cenvat credit was never availed; Rule 3(5) applies only where Cenvat credit has been taken and so cannot be used to justify duty-free removal. Options are to avail credit and follow the reversal mechanism on removal or declare the asset as scrap and pay duty on the transaction value; merely stating that credit was not availed does not relieve the duty obligation. (AI Summary)
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