WHETHER EXCISE DUTY LEVIABLE ON USED CAPITAL GOODS

[pankaj mudgal]

DEAR SIR,

                     Plz tell me about whether excise duty is levied on sale of used capital goods if these are not sold as waste & scrap.

AI Summary

Excise Duty on Used Capital Goods: Pay CENVAT Credit Minus 2.5% per Quarter Held, or Current Rate on Depreciated Value. A discussion on whether excise duty applies to the sale of used capital goods that are not sold as waste or scrap. Participants agree that if CENVAT credit was availed on the capital goods, an amount equal to the credit must be paid upon their removal, reduced by 2.5% for each quarter since the credit was taken. Another contributor mentions the need to remit excise duty at the current rate on the depreciated value, typically depreciated at 13.91% annually. The discussion emphasizes the necessity of adjusting the CENVAT credit according to the duration the capital goods were held.