Capital Goods Cleared as Scrap are Subject to Excise

[Ref: F.No. 267141/2009-CX8 dated 7th December 2009]

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

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.

2. 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.