Sale and purchase of machine without Excise duty

[PRAVEEN BANSAL]

We have purchased an old machine in year 2005 on which the supplier has not charged excise duty as he has purchased the same at the time when cenvat credit on purchase of machine was not allowed. Now we want to sold the above old machine without charging of excise duty since we have purchased the same without payment of excise duty. Is it correct or not

[Surender Gupta]

As per the scheme of Central Excise with Cenvat Credit there is no duty or amount (equal to excise duty) is payable on removal of machine on which no cenvat credit has been availed. Therefore, you are not required to charge or pay anything on account of excise duty or reversal of cenvat credit.

[GANAPATHY RAJENDRAN]

AS NO EXCISE DUTY WAS AVAILED AS CREDIT DURING THOSE DAYS, THE SALE OG THE CAPITAL GOODS SUSEQUENTLY ,IS OUT OF THE PURVIEW OF CENVAT CREDIT RULES AND THEREFORE THERE IS NO NEED TO REVERSE ANY CREDIT / DUTY

[Guest]

No Duty needs to be paid. Because u hv not take any credit secondly excise duty is payable onle when manufacture takes place (machine remains machine)

AI Summary

No excise duty on resale of capital machinery when no cenvat credit was availed, permitting sale without duty. Where a capital machine was acquired without payment of excise duty and no cenvat credit was availed at acquisition, its subsequent sale does not require charging excise duty nor reversing any cenvat credit; removal of such capital goods lies outside cenvat reversal obligations and excise is not attracted by mere transfer of the machine.