Excise implication

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Our company was incorporated in the year 2004 and engaged in manufacturing of auto parts and located in Noida. We had bought second hand CNC machine from a manufacturing company in January 2006 on a basic value of Rs. 2.50 Lacs but that company passed on excise duty of Rs. 4.40 Lacs. Presently this machine is not working properly, therefore, we want to sell the said machine for Rs. 2.00 Lacs plus Excise duty @ 16.48% on this transaction value. Is any formality from Excise point of view to be completed to conclude the transaction?

AI Summary

Company Must Reduce CENVAT Credit by 2.5% Quarterly and Reverse Balance Duty for CNC Machine Sale per Notification No.39/2007 CE. A company incorporated in 2004, manufacturing auto parts in Noida, purchased a second-hand CNC machine in 2006. The machine was bought for Rs. 2.50 Lacs with an excise duty of Rs. 4.40 Lacs. The company wishes to sell the malfunctioning machine for Rs. 2.00 Lacs plus 16.48% excise duty. A response advised that, according to notification No.39/2007 CE, the company must reduce the CENVAT credit by 2.5% per quarter from the date of availing CENVAT and reverse the balance duty amount when selling the machine.