Excise cenvat credit

This query is : Open

ujwala (Querist)
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28 October 2013 company had purchased mother machines under EPCG licence 3 years back. now company wanted to sell out that machines. To sell the machines first we have to pay the custom duty so on that basis can we take the credit of the same and the same credit can be passed on to customer (purchaser)?
Secondly we have purchased some imported machines for production and we have already paid the custom & CVD and the same has been utilised earlier (we have already used the machines for last 3 years )so that duty also can we can pass on to the customer(Purchaser)&

Arun Kumar Singh

Arun Kumar Singh (Expert)
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28 October 2013 If you have imported the capital goods under EPCG scheme then you have to fulfilled the export obligation then you should sale the capital goods.
You can take the cenvat credit in two financial year on imported the capital goods. At the time of sale of capital goods you will charge the duty after depreciation.

ujwala

ujwala (Querist)
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28 October 2013 but we have not fulfill any export obligation but management decided to shut down the plant fully and sell out all the machinery's but without making payment of custom duty & CVD we can not sell the machines so management decided to pay the custom duty with interest and then sell the machines. Now We require your advise on below matter,

a) If we will pay custom duty to Custom Department and decided to take credit then, How to pass on CVD to Customer?

b) If Customer demands, that they do not want any CVD, they want commercial invoice , VAT bill, Then kindly guide us on this, how to deal?

2) Secondly we have imported machines from Italy for production on Nov 2010. We had already paid custom duty and utilize credit back. But if now that machine also want to sell then kindly advise us, How to pass on credit to Customer now?, Because we have used that machine for last three Year.

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ujwala

ujwala (Querist)
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28 October 2013 but we have not fulfill any export obligation but management decided to shut down the plant fully and sell out all the machinery's but without making payment of custom duty & CVD we can not sell the machines so management decided to pay the custom duty with interest and then sell the machines. Now We require your advise on below matter, a) If we will pay custom duty to Custom Department and decided to take credit then, How to pass on CVD to Customer? b) If Customer demands, that they do not want any CVD, they want commercial invoice , VAT bill, Then kindly guide us on this, how to deal? 2) Secondly we have imported machines from Italy for production on Nov 2010. We had already paid custom duty and utilize credit back. But if now that machine also want to sell then kindly advise us, How to pass on credit to Customer now?, Because we have used that machine for last three Year.