Cenvat on sale of capital goods

This query is : Resolved

sanalkumar t m (Querist)
Follow

26 September 2013 Dear Sir,
we purchase some capital goods and availed input tax. Used above goods for 5yrs and now we are going to sell that capital goods.

my query is whether we should charges excise duty on the above sale?

Arun Kumar Singh

Arun Kumar Singh (Expert)
Follow

26 September 2013 As per rule 3(5A) of cenvat credit rules as amended w.e.f. 1.4.2012, if capital goods are removed after use, the manufacturer or output service provider shall pay an amount equal to original cenvat credit taken reduced as per prescribed rates based on number of years used. cenvat credit originally taken on the capital goods is redused as 2.5% for each quarter of a year or part thereof from the date of taking the cenvat credit.