TaxTMI 
TaxTMI 
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
Sale and purchase of machine without Excise duty
20 Dec 2008 
3 Replies 
2843 Views Asked by
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. (AI Summary)
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. (AI Summary)