Sale and purchase of machine without Excise duty

[Guest]

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

AI Summary

Sale of 2005 Machine Without Excise Duty Confirmed Legal; No Cenvat Credit or Duty Required on Sale. A query was raised regarding the sale of an old machine purchased in 2005 without excise duty, as the supplier did not charge it due to the unavailability of Cenvat credit at the time. The question was whether selling the machine without excise duty was correct. Three respondents confirmed that since no Cenvat credit was availed during the purchase, there is no requirement to charge or pay excise duty upon its sale. The sale of such capital goods is outside the scope of Cenvat credit rules, and no duty needs to be reversed or paid.