Excise duty on t/f of capital asset to another branch.

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This query is : Resolved

Shashwat Agarwal (Querist)

18 December 2014 Dear Experts,
we have transferred a capital asset, on which we have not taken the excise credit, to another branch.
now we have to issue an invoice u/r 11 of C.Ex.Rules 2002 for the transfer purpose and for receiving Form F under VAT laws.
The question is that whether i have to show the Excise duty amount in the invoice or not since credit has not been taken by us previous to transfer.

Arun Kumar Singh

Arun Kumar Singh (Expert)

19 December 2014 If you want to take cenvat credit of another unit then on the basis of invoice you can take the cenvat credit under rule 11 of central excise rules 2002.

Shashwat Agarwal

Shashwat Agarwal (Querist)

19 December 2014 No sir, we have not to take the credit on that branch also.
We are deciding to issue invoice u/r 11 of the said rules, but the question is that whether an excise invoice can be raised without showing the excise duty????
If we show the duty Amt. We have to pay it which will create a liability on us whose credit will also be not available.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)

19 December 2014 Dear Shashawat issuance of invoices under rule 11 required in all cases. However changeability of duty depends on the following
if you had availed Cenvat Credit on the time of original purchase under rule 4(2) of CCR 2004, then in all cases you need to charge duty in accordance with 3(5A)

However if you had not taken cenvat credit on orginal purchase therefore you don't need to charges duty on subsequent removal

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