Reversal of cenvat credit availed on capital goods:

There are four conditions in which CENVAT credit is reversed:

1. Capital goods removed as such sale: If Capital goods are removed as such (means without use), full CENVAT Credit availed on such goods will be reversed.
2. Capital Goods removed after use: if capital goods are removed after use, say after 2 years then depreciation @ 2.5% per quarter for 8 quarter will be charged on CENVAT Credit and balance will be reversed. If duty payable on transaction value at the rate of excise duty comes more than depreciated CENVAT, then this higher excise duty will be charged.
3. Capital Goods removed as Waste: If capital goods is removed as waste & scrap then, duty will be charged on transaction value of such sale. If CENVAT Credit was not availed on purchase of such capital goods, then no duty will be charged at the time of sale.
4. CENVAT Credit reversal on writing off of capital Goods: if capital goods is written off from books of accounts (whether goods is physically available), before use then total CENVAT Credit availed on such capital good will be reversed. If letter on this goods is again taken in books of accounts, then reversed CENVAT Credit can again be taken.

These are the above situations I think is applied for reversal of CENVAT Credit on Capital Goods. If anyone has any correction on this please write.