Levy of Excise duty on sale of DG set

This query is : Resolved

Sanjay (Querist)
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10 June 2009 Hi,

We were purchased the DG set in the year 1989 and sold the same in the year 2008. So at the time of sell the DG set in 2008, Is it require to levy excise duty on DG set or not?

Pls. clarify the same.

Thanks
Sanjay

krishnan

krishnan (Expert)
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10 June 2009 Yes ED is payable. The computation will be as follows -

ED credit availed at the time of purchase in 1989 - A
For each quarter (3 month period) ,compute 2.5% of A (assuming it was purchased in Apr'89 ,as at Mar'90 , the amount would be 10% (4 qtrs X 2.5%)of the original credit availed)- B
In the yaer of sale(2008),compute C = A-B
C is the amount of ED payable on sale in 2008.
In your case, since the asset is more than 10 years old ,no ED is payable as "C" calculated above will be zero.(irrespective of the sale value)
You should however ensure that you have the cenvat copy of the original invoice (at the time of purchase) & the relevant page of RG23C wherein you had taken the ED credit at the time of purchase.