20 August 2012
Sir, we are engaged in the manufacturing process of Flexible packaging Film for which we require engraved printing Cylinder, but we have stock of Old & used cylinder which now unusable , we want to clear this stock as scrap on payment of duty, pl.Note these are very old stock , we have no any purchase record, how can i calculate duty for payment. is this will be treated as old capital goods as such clearance
pl.inform right procedure to pay excise as per rule.
20 August 2012
as cylinders are neither inputs nor capital goods on which cenvat credit has been taken, such scrap would be cleared on your vat invoice only, without paying excise duty.
however if the cenvat credit has been availed as input then you have to pay duty on transaction value.
if the cenvat credit has been availed as capital goods then you have to follow the SLM 2.5% depriciation per quarter for such goods valuation.
CAclubindia
