https://www.taxtmi.com/forum/issue?id=3710 Clearance treatment turns on characterization: if capital goods are cleared as waste and scrap, duty is payable on the transaction value under Rule 3(5A). If sold intact as functioning machinery, cenvat must be reduced by the prescribed periodic depreciation adjustment from the date of installation until credit is exhausted. The invoice should state whether the item is scrap or a used working machine (not dismantled) and may note age and condition. Duty liability depends on the factual end use by the purchaser. en-us Wed, 04 Jan 2012 15:03:54 +0530 Thu, 23 Jan 2025 15:58:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=3710 Clearance treatment turns on characterization: if capital goods are cleared as waste and scrap, duty is payable on the transaction value under Rule 3(5A). If sold intact as functioning machinery, cenvat must be reduced by the prescribed periodic depreciation adjustment from the date of installation until credit is exhausted. The invoice should state whether the item is scrap or a used working machine (not dismantled) and may note age and condition. Duty liability depends on the factual end use by the purchaser. Discussion-Forum Central Excise Wed, 04 Jan 2012 15:03:54 +0530 https://www.taxtmi.com/forum/issue?id=3710