Charging excise duty on capital goods sale

[Mridul Sethi]

Procedure for removal of capital goods for One plant to another with regards to excise duty. In this case duty will be reversed at Old rate(at the time of purchase) or at existing rate?

Mridul Sethi

AI Summary

Excise Duty on Capital Goods Transfer: Reverse CENVAT Credit with 2.5% Deduction Per Quarter for Correct Calculation A discussion on the procedure for charging excise duty when transferring capital goods between plants. The query revolves around whether excise duty should be reversed at the original purchase rate or the current rate. A response indicates that CENVAT credit should be reversed, deducting 2.5% of duty per quarter. Further clarification is sought on whether excise duty should be charged at the removal rate or reversed like input removal, using an example involving the sale of machinery to determine the correct excise duty calculation.