Regarding reversal of CENVAT credit on removal of capital go

This query is : Resolved

Guest

Guest (Querist)

29 July 2010 Dear Sir,

Kindly clarify following point with respect to reversal of CENVAT credit:
Suppose a machine is purchased on 01/04/2009 by paying Excise Duty of Rs. 1,00,000. Now the same machine is sold on 25/03/2010 after using in manufacturing of excisable goods.

My questions are :

1. Whether 100% CENVAT credit can be claimed in year 2009-2010, because 100% credit is allowed in the year of purchase only when such capital goods are removed as such?
2. How much CENVAT credit will be available in year 200-2010 & 2010-2011?
3. How much CENVAT credit to be reversed on 25/03/2010 i.e. at the time of sale.

Thanking you,
Yours Truly,
Kunal Agrawal

CA Sanat Pyne

CA Sanat Pyne (Expert)
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29 July 2010 1.Yes you can avail 100% on the same year as the capital goods are remooved as such.

2. The same amount of CENVAT credit to be reversed on 25/03/2010 i.e. at the time of sale.