Meaning of "removed as such" in IDT

Capital Goods removed as such means CG is removed from the factory without being put to use. (Whether Disposal or CG is not suitable for intended use)

According to Rule 4(2), assessee is authorised to avail the full CC on CG if the CG is removed as such in the first financial year. Therefore Rule 3(5) clearly says in this situation if CG is removed as such in the first financial year, avail the balance cc on CG and then reverse 100% cc so availed (This is because in the first financial year, max 50% of cc on GC can be claimed, other than SSI Unit)

If the CG is removed after being used, 2.5% per quarter or part (other than computer and peripherals) can be retained  from the amount of cc availed (from the date of availment of cc and not the date of receipt of CG in the factory) and balance shall be reversed.

Hope this is clear..

Regards

Thanks Sir