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Ex.duty on sale of used capital goods

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This query is : Resolved

Jayadeep (Querist)

14 December 2011 According to me there is no Ex. Duty on Used Capital goods sold after 10 years. ( since 2.5% is allowable every quarter). But Dept is not accepting this.

Can any one give me any supporting Case laws
Or any Circular/ Notification regarding this.

Rgds,

P. Jayadeep

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

14 December 2011 Yes, obviously.

Please read the rule 3(5) of Cenvat Credit Rules 2004. If you have availed the Cenvat Credit and removing the CG as such, then

.............

Provided also that if the capital goods, on which CENVAT Credit has been taken, are removed after being used, the manufacturer or provider of output service shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by 2.5 per cent for each quarter of a year or part thereof from the date of taking the Cenvat Credit;”.

also read the Notification No. 10/95-Central Excise dtd. 23.02.1995

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