Transfer of capital goods from one unit to another unit

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udaya chandran (Querist)
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23 November 2013 Please advise us, how to calculate Excise Duty for transferring capital goods from one unit to another unit as such. We have already taken CENVAT and utilised the same in the first unit.

For example, Capital Goods value is Rs.100/-, Excise duty is Rs.10/-, we availed CENVAT of Rs.10/- and utilised, now we want to transfer the capital goods to another unit as such, how to calculate Excise duty for the Invoice.

harish

harish (Expert)
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23 November 2013 Please refer Sub-rule 5 of Rule 3 of CENVAT Credit Rules, 2004.

(5) When inputs or capital goods, on which CENVAT credit has been taken, are removed as such from the factory, or premises of the provider of output service, the manufacturer of the final products or provider of output service, as the case may be, shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover of an invoice referred to in rule 9:

Provided that such payment shall not be required to be made where any inputs or capital goods are removed outside the premises of the provider of output service for providing the output service :

Provided further that if the capital goods, on which CENVAT Credit has been taken, are removed after being used, the manufacturer or provider of output services shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by the percentage points calculated by straight line method as specified below for each quarter of a year or part thereof from the date of taking the CENVAT Credit