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

Cenvat credit reversal: seller must reverse periodic proportionate credit or remit excise on sale value; purchaser may claim credit.
Sale of used capital goods requires the seller to calculate both a periodic cenvat credit reversal and excise duty on the transaction value and remit the higher liability. Machinery older than ten years is generally taxed on transaction value with excise payable and the purchaser may claim cenvat credit on that duty. Purchasers can avail credit of duty reversed or charged, subject to normal credit eligibility rules.