Excise replication on sale of used capital goods

Hi

We purchased a machinery on 15/03/2005 & availed CENVAT (ED & E Cess) credit. On 16/01/2012, we want to sell the asset.

As per my knowledge, 2.5% on each quarter or part of quarter should be reduced from CENVAT credit availed & 'AMOUNT' equal to the remaining CENVAT availed should be paid to excise.

Should we charge excise on sale of this machinery? Should be charge Secondary & Higher secondary cess? Can the buyer of that used asset will be able to avail CENVAT credit which is asked to charge by law?

Thank you!

Replies (1)

you have already taken cenvat credit on the purchase of machinery , now when you want to sale this machinery you may pay the 2.5% of quarter wise centvat credit which you have already taken.

on sale of machinery you may charge excise and purchaser may take this as a cenvat credit

 

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