Excise duty on transfer of old machines (urgent)

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This query is : Resolved

Vipin Kumar Sharma (Querist)

21 December 2012 DEAR SIR

WE ARE PVT LTD MFG. CO REGISTERD IN EXCISE, WE HAVE PURCHAED A MACHINE ON 20/11/2012 OF RS 10,50000. EXCISE WAS ON THIS MACHINE, RS. 129780.00, WE HAVE DONE SOME WORK ON THIS MACHINE, AND NOW WE ARE TRANSFERING THIS MACHINE TO OUR ANOTHER UNIT IN BANGLORE OF RS 14,00,000.00 ON 23/12/2012 PLEAE TELL ME OUR EXCISE LIABILITY ON THIS MACHINE,

SHOULD WE CHARGE RS 129780.00 OR WE CHARGE 12.36% ON RS 1400,000.00

PLEASE TELL BRIEFLY

THANKS & REGARDS

Ajay Raghatate

Ajay Raghatate (Expert)

22 December 2012 I. You can removed this machine as "Input or capital Goods Removed as Such"
And pass on the cenvat credit which you have availed i.e. Rs. 129780.00
It doesn't matter, you trf this machine on value of machine 14 lacs or same purchase value. you don't inform to dept reg work you had done on this machine.
but first you have to avail balance 50% cenvat cr ag this machine.

II. You have to avail cenvat credit as Input for 100% excise duty. Trf to another unit with value Rs. 14 Lacs and charge 12.36% excise Duty, And show as finished goods in Excise Return (Mfg & Sale).as well as maintain stock account in Daily Stock Account(RG1)

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