Reversal of CENVAT credit -Reg., Central Excise

[vinay wakde]

We have purchased a Storage Tax during 2004 for our plant and availed credit under Capital Goods. The said Tank was sold as scrap during 2010 and paid the duty as per transaction valve. Kindly let us know, whether the duty paid by us is correct or we have to reverse proportionate duty to the extent of CENVAT credit taken by us after considering depreciation 2.5% per quarter from 2004 to 2010.

Regards,

 

VINAY

Posts / Replies

[Pradeep Khatri]

Reversal of CENVAT credit after deduction 2.5% per quarter is the right method to setoff the Central Excise Duty.