Amount payable when Capital Goods are removed as scrap - CCR Amended
RULE 3(5A) of the CENVAT Credit Rules, 2004, specifies that when capital goods, on which CENVAT credit has been taken, are removed after being used, whether as capital goods or as scrap or waste, the manufacturer or provider of output services shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by certain percentage points calculated by straight line method as specified for each quarter of a year or part thereof from the date of taking the CEVAT Credit …. if the amount so calculated is less than the amount equal to the duty leviable on transaction value, the amount to be paid shall be equal to the duty leviable on transaction value.
This sub-rule does not specify as to what the amount payable is when the capital goods are removed as scrap or waste though scrap and waste is mentioned in the rule.
Now, the Government has stipulated that the amount payable is the duty leviable on transaction value. (Maybe it could be the duty on depreciated value)
The entire Rule 3(5A) is substituted.
Notification No.., Dated: September 27, 2013