Sale of Old Machinery

[RAM SHARMA]

Dear Experts,

We want to sale old and used machinery. Will we reversed cenvat credit  @2.5% per quater or to be charged excise duty on transaction value. Secondly can  a purchaser take cenvat credit on such cenvat reversal on machinery. Pl advice.

Thanks

AI Summary

Clarifying Cenvat Credit Reversal and Excise Duty on Old Machinery Sales: Key Points and Best Practices A discussion on the sale of old machinery involves queries about reversing Cenvat credit and charging excise duty. The original poster asks whether to reverse Cenvat credit at 2.5% per quarter or charge excise duty on the transaction value, and if the purchaser can claim Cenvat credit on the reversal. Responses suggest reversing Cenvat credit at 2.5% per quarter, with the purchaser able to claim it. If machinery is over ten years old, charge excise duty on transaction value. The duty to be paid should be the higher of the two calculations: Cenvat reversal or excise duty.