Payment of duty with the scrap value

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An Excisable unit has purchased some capital goods and packing materials ( input) after following cenvat rules.Now unit is going to close my queries are :- 1. Whether Capital goods ( machinery ) can be sold as Scrap & Westage and pay the amount ( duty) levy on it as per Cenvat Rule 3 (5A).? 2. In regard of Packing materials as it is not usable or transferable to other unit as it is printed and not reusable can we scrap it and pay duty on scrapped value or we have to pay duty the amount of cenvat credit taken at the time of purchase as per Rule 3(5) ? Manoj

AI Summary

Excisable Unit Closing: Clarification on Duty for Scrapped Capital Goods and Packing Materials under Cenvat Rule 3(5A). An excisable unit planning to close operations inquired about handling capital goods and packing materials under Cenvat rules. The first question addressed whether capital goods, such as machinery, can be sold as scrap with duty paid according to Cenvat Rule 3(5A). The second question concerned whether packing materials, which are not reusable or transferable, can be scrapped with duty paid on the scrapped value or if duty should be based on the original Cenvat credit. Responses indicated the need to reverse Cenvat Credit or pay excise duty as per rules, with considerations for selling scrap at transaction value.