I need to clear old used machinery to a sister unit. Totally five machines need to shifted, the first machine is one on which CENVAT credit has been taken and the other are those on which no CENVAT credit had been taken earlier but but parts on which CENVAT credit had been taken were used to repair the machines and replace spoiled parts over the years. In case of the first machine CENVAT credit has to be reversed after providing for reduction @ 2.5% per quarter u/r 3(5), but the question is how to i show the value of the machinery, should it be a valued arrived at by dividing the reversal amount by 12% i.e propotionate value or should the same value as shown on the purchase invoice or bill of entry be shown? And how should the other four machines be valued? As my invoicing software does not allow me to write additional notes on the invoice is it sufficient to make a stamp of the phrase "Capital goods removed as such u/r 3(5) of the CENVAT credit rules 2004 after being used" or is it necessary that this phrase must be printed only on the invoice?
CAclubindia
