We understand that, as per survey off policy issued by CIL, the assets are sold off as scrap after the use of minimum 10 year. We also noted that the some assets are appearing in surveyed off since 2000.
Thus, if the capital assets are procured before 01.03.2011(day when coal becomes excusable) and cenvat credit has not been availed and utilized, (in Excise Register or GST Register) the GST would not be payable on scrap sale of Plant and Machinery as neither Cenvat credit avail nor GST Credit, no question of reversal of ITC will arise. In this issue, we have favorable Judgment in our own case.
However, we have to establish that the items sold as scrap was procured before 01.03.2011 and cenvat credit was not availed. This becomes very clumsy. It is prudent to charge GST on sale of scrap and issue Proper Invoice accordingly.
