Capital goods removal in er-1

Dear Victor

1. It is enough to mention the same in CENVAT tab, the sheet where we disclose cenvat utilization (Point no. 8 and Sl.no. of 12 of the ER 1 return). For your kind information I'm attaching the ER 1 pdf with this message

2. In case of payment of excise when we are removing the capital goods the following higher should have to pay either through CENVAT Credit or cash.

Value of Capital goods  Rs. 100000 , Rate of Duty 10%, Input credit taken on capital goods is Rs. 10000

a) Amount of CENVAT credit taken on capital goods           100%

   Less: No. of Quarters Capital goods utilised * 2.5%

  (2.5% for other than computers and computers

  peripherals)

    For 3 years usage (3yrs * 4 Quarters * 2.5%)                  30%

Banlace is                                                                               70%

70% of 10000 = Rs. 7000   or

b) rate of duty is 10% when clearing the capital goods   on transaction value

It mean that the Rs. 100000 value of capital goods sold after 3 years for Rs. 20000 

duty on 20000 is Rs. 20000 * 10% = Rs. 2000

So, higher of Rs. 7000 (point a) and Rs. 2000 (point b) is Rs. 7000

So, duty is 7000 we have pay either through cenvat credit or in cash.

dear sir 

imported capital goods we have taken credit of cvd and additional duty

same rule we follow for additonal duty treatment or not

please clear 

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