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TMI BlogReverse in scrap of AssetX X X X Extracts X X X X X X X X Extracts X X X X ..... Reverse in scrap of Asset X X X X Extracts X X X X X X X X Extracts X X X X ..... not removing as such. Regards Swapneswar Muduli Reply By SHIVKUMAR SHARMA: The Reply: Dear Swapneswar Please refer sub rule(5b) of rule 3 of cenvat credit rules 2004. (b) If the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount equal to the duty leviable on transaction value.] Shivkumar sharma Reply By Ganeshan Kalyani: The Reply: Refer rule 5A (a)&(b) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CCR 2004. Reply By MUKUND THAKKAR: The Reply: How much old ? if your machinery is very old and after the reduction of 2.5% your value is less than your Realization value, in such case you have to pay the excise duty on your Realization value. not value calculated after deduction of 2.5% per quater basis. After the scrap , If your machinery is reusable in such condition you have to follow cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vat rules. Reply By Ganeshan Kalyani: The Reply: I agree with the views of Sri Mukundji. Thanks. Reply By Atul Kumar: The Reply: As per Rule 5A for capital goods, other than computers and computer peripherals @ 2.5% for each quarter to be reduced from transaction value. Provided that if the amount so calculated is less than the amount equal to the duty leviable on transaction value, the amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to be paid shall be equal to the duty leviable on transaction value. Reply By Suryanarayana Sathineni: The Reply: Dear Friend, It is a known fact and the same is already expressed by some of our learned friends. There are 3 options provided for in the Rule 3(5) of CCR,2004 and they are briefly, Clearing as such by debiting the amount of credit availed ; clearing after usage of some time by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deducting 2.5% of credit for usage of each quarter and pay duty on the transaction value if the CG are sold in form of scrap.
Since, your subject query is what is the duty to be paid when you are selling/clearing the used CG by way of scrap, The answer is you need to pay duty on the transaction value at which such scrapped CG is being cleared/sold.
Best Regards
Suryanarayana X X X X Extracts X X X X X X X X Extracts X X X X ..... um - Knowledge Sharing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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