Notification No. 39/2007-Central Excise (N.T.)

[JAGANATHAN KUMARAVEL]

Please let us know whether Notification No. 39/2007-CE(N.T.) still holds good  or is there any new notification on Removal of Capital Goods - Reversal of Cenvat Credit

 

 

[YAGAY andSUN]

This Notification still hold good and you would have to reverse 2.5% per quarter while removing of capital goods after usage.

Furhter, there was a circular that clarifed that even if after 10 years of usage of capital goods, if removed, then, even, there is a requirement to pay C.E. duty on the transaction value of the capital goods.

Hope this will clarify this issue.

Best Regards,

Pradeep Khatri

AI Summary

Cenvat credit reversal on removal of capital goods requires reversal and duty payment on transaction value even after long use. Notification No. 39/2007-Central Excise (N.T.) continues to require periodic reversal of Cenvat credit upon removal of capital goods after use, obliging taxpayers to reverse credit apportioned on a quarterly basis and to pay excise duty on the transaction value of the capital goods on removal, with administrative clarification that this duty liability applies even after extended periods of use.