https://www.taxtmi.com/forum/issue?id=109808 Transfer of capital goods removed after use triggers CENVAT credit reversal under Sub Rule (5A) of Rule 3, Cenvat Credit Rules, 2004: the transferor must pay the credit taken reduced by prescribed quarterly depreciation rates, with a proviso that if this computed amount is less than duty on transaction value the duty on transaction value becomes the payable amount. The rule applies to removals after use including lease or transfer to another unit; if goods are removed "as such" full reversal is required. Non registration of the receiving unit makes excise duty a cost and transfer of right to use may attract State VAT. en-us Sat, 30 Jan 2016 10:49:56 +0530 Thu, 23 Jan 2025 15:56:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=109808 Transfer of capital goods removed after use triggers CENVAT credit reversal under Sub Rule (5A) of Rule 3, Cenvat Credit Rules, 2004: the transferor must pay the credit taken reduced by prescribed quarterly depreciation rates, with a proviso that if this computed amount is less than duty on transaction value the duty on transaction value becomes the payable amount. The rule applies to removals after use including lease or transfer to another unit; if goods are removed "as such" full reversal is required. Non registration of the receiving unit makes excise duty a cost and transfer of right to use may attract State VAT. Discussion-Forum Central Excise Sat, 30 Jan 2016 10:49:56 +0530 https://www.taxtmi.com/forum/issue?id=109808