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Excise duty to be paid on capital goods

799 views 6 replies
We purchased capital goods in 1997. We sold the same in 2011after taking capital deprecation on mod vat taken which came to 0 . Now excise audit officer says we need to pay duty on sale value. Is this correct. Mod vat taken in 1997 after taking deprecation on the value of the goods at 2.5 percent per quarter is bill. Please help
Replies (6)

look into the invoice issued by yourself, if the same is issued as capital goods clearance, then no need to pay duty, but if its issued as finished goods / passed through RG-1/DSA, then duty is payable on transaction value.

We have romoved the capital goods from the RG23 C part 1 register only.

we have sold the machine to third party at the value of 3,00,000 RS.

ask the audit team to issue SCN, as your stand is right and they are not updated with the CCR 2004

Agree. No duty is requuired to be paid on the basis of above facts.

thanks for all of you for all the help.

Audit team has backed down.

Regards

 

thanks for all of you for all the help.

Audit team has backed down.

Regards

 


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