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Date: 07-12-2009
Notification No: Central Excise INSTRUCTION DATE 07/12/2009
Issuing Authority: Central Excise  
Type: Instruction
File No: 267141/2009-CX8
Subject: Leviability of duty on capital goods cleared after being put into use for over 10 years

Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs

New Delhi dated 07.12.2009.

To,

The Chief Commissioner of Central Excise,
Coimbatore Zone.

Sir,

Subject:- Leviability of duty on capital goods cleared after being put into use for over 10 years-reg.

Please refer to your letter dated 22.11.08 issued from C.No. IV/16/203/2008-Tech (CCO) on the above referred subject matter.

  1. The matter has been examined. It is clarified that in view of specific provisions under Rule 3(5A) of the CENVAT Credit Rules, 2004, if the capital goods, on which cenvat credit has been taken, are cleared as waste and scrap, even after a period of 10 years, an amount equal to the duty leviable on the transaction value for such capital goods cleared as waste and scrap, would be payable.

Yours faithfully,
(Amish Kumar Gupta)
OSD (CX-8)
F.No.267141/2009-CX8

Copy to:- The Chief Commissioners of Central Excise(All) (including LTU) for information please.

       

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