Charging excise duty on capital goods sale, Central Excise

[Mridul Sethi]

Procedure for removal of capital goods for One plant to another with regards to excise duty. In this case duty will be reversed at Old rate(at the time of purchase) or at existing rate?

Mridul Sethi

Posts / Replies

[Pradeep Khatri]

CENVAT credit would be reversed after deduction of 2.5% of duty per quarter if you are removing Capital goods from your one unit to another unit.

[Mridul Sethi]

Sir, Pls let me clear that:-

1. Will Excise Duty will charged @ prevalent rate at the time of removal or

2. Will we reverse the duty as in case of Input removal.

Also pls make it clear by an exp. that a company has make decision to sale a machinary @ Rs.2 lac & its purchase price is Basic Rs.5 Lac & it is purchased 4 years before. How to calculated excise duty. Is it 10.3% on Rs.2 Lac or on 5 lac minus 40%(2.5%x4qtr.x4years)....Mridul