Pushkar Singh Rawat (CA Final) (54 Points)
14 December 2010
If capital goods after partial used removed from factory. Amount equal to Cenvat credit taken at the time of entry shall be paid.
My question is- whether cenvat credit avialed is utilised for payment of duty.
if any case law,pls let me know the same
CA. MUKESH KUMAR
(CHARTERED ACCOUNTANT)
(183 Points)
Replied 14 December 2010
The CENVAT credit may be utilized for payment of –
(a) any duty of excise on any final product; or
(b) an amount equal to CENVAT credit taken on inputs if such inputs are removed as such or after being partially processed; or
(c) an amount equal to the CENVAT credit taken on capital goods if such capital goods are removed as such; or
(d) an amount under sub rule (2) of rule 16 of Central Excise Rules, 2002; or
(e) service tax on any output service:
SO YOU CAN USE CENVAT CREDIT FOR THIS PURPOSE.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 18 December 2010
no bar to pay duty from credit account on removal of capital goods from factory .
Vijay K. Agrawal
(Service)
(608 Points)
Replied 22 December 2010
Dear pushkar,
since you are removing capital goods after use. you not need to reverse full credit. the dyty payable will be as under.
Provided also that if the capital goods, on which CENVAT Credit has been taken, are removed after being used, the manufacturer or provider of output service shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by 2.5 per cent for each quarter of a year or part thereof from the date of taking the Cenvat Credit;”.
[ Inserted vide Notification No. 39/2007 -Central Excise (N.T.), dated 13/11/2007 ]
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