TaxTMI 
TaxTMI 
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.
WHETHER EXCISE DUTY LEVIABLE ON USED CAPITAL GOODS
01 Mar 2011 
5 Replies 
9635 Views Asked by
Cenvat credit adjustment required on sale of used capital goods, payable reduced over time from credit date.
Where CENVAT credit has been availed on capital goods, removal or sale of those goods after use requires payment equal to the CENVAT credit taken on the goods, reduced by a fixed percentage for each quarter or part thereof from the date of taking the credit. Administrative practice may alternatively involve assessing excise on a depreciated asset value, but the statutory reversal mechanism applies when input credit was claimed. (AI Summary)
Where CENVAT credit has been availed on capital goods, removal or sale of those goods after use requires payment equal to the CENVAT credit taken on the goods, reduced by a fixed percentage for each quarter or part thereof from the date of taking the credit. Administrative practice may alternatively involve assessing excise on a depreciated asset value, but the statutory reversal mechanism applies when input credit was claimed. (AI Summary)