Capital Goods Duty

[Avinash Bhavsar]

Dear Sir,

We have pur the II hand machine from local they charge us duty 45% the slab is as under

Tool & Cutter M/c Value 125000

Excise Duty                         40418

Cess                                       1213

Total                                      16631

Vat 12.5%                             10829

Total                                    187460

They Pur the m/c form Praga Tools Ltd. Balanaga, Hydrabad

can we avail the excise duty, they mention in Inv goods being sold under Cenvat rule 3(5)(b), 2004

warm regards,

 

AI Summary

Business Queries Excise Duty on Used Machine; CENVAT Credit Confirmed as per Cenvat Rule 3(5)(b), 2004 A business inquired about the excise duty charged on a second-hand machine purchased locally, with a duty rate of 45% applied. They sought clarification on whether they could avail CENVAT credit as per Cenvat rule 3(5)(b), 2004. One response confirmed that CENVAT and Input Tax Credit could be claimed, with 50% available in the first financial year and the remainder in the next. Another response advised verifying that excise duty was charged at the correct rate based on the invoice value.