about entry of sale of capital goods in ER-1.

[MEHUL ASHAR]

Respected Sir,

                         One of my clients has sold machiney(excisable)now is it  necessary to show the whole amount of duty in the capital goods input as such in the ER-1 or we can part the entry in two as one part in credit & other in the PLA, is it valid or not please guide as soon as possible.

[YAGAY and SUN]

You may debit the required amount of duty from PLA as well as CENVAT credit  account.  It is legal to show and debit in such way.

 

[SHASHIKANT WATEKAR]

show in ER-1 , CAPITAL GOODS AS SUCH REMOVED. IN DUTY PAID SHEET.

AI Summary

Duty on sale of capital goods may be apportioned between PLA and CENVAT credit and recorded in ER-1.
Duty on sale of excisable machinery classified as capital goods may be apportioned between the Personal Ledger Account and the CENVAT credit account; such apportionment is permitted, and the removal of capital goods must be shown in ER-1 under the capital goods removed entry and recorded in the duty paid sheet.