OWN MANUFACTURING CAPITAL GOODS
This query is : Resolved
22 January 2010
Dear Sir,
We are a Battery manufacturing Unit. Registered with Central Excise. We have Produce a battery testing machine for testing the batteries.This machine is in-house built up i.e our engineer are developed the machine.
Now can anyone tell me what type of Central Excise Procedure should follow for the same.
Thanking you
Rd
We are a Battery manufacturing Unit. Registered with Central Excise. We have Produce a battery testing machine for testing the batteries.This machine is in-house built up i.e our engineer are developed the machine.
Now can anyone tell me what type of Central Excise Procedure should follow for the same.
Thanking you
Rd
BASUDEV PAUL
(Expert)
22 January 2010
Mr. Ramu
As per your query I think your registered only as battery manufacturer which is not a capital goods in nature
So first thing you have get amended your excise registration certicate where the the nature of other machinery you are manufacturing in house should
Then consider under which category this machine comes bye ist use means produtive/testing device life span of it
Now decide ch.id of excise you may consult one time to any local consultant.
Then clear it as normal you are doing for battery with duty invoice.
As per your query I think your registered only as battery manufacturer which is not a capital goods in nature
So first thing you have get amended your excise registration certicate where the the nature of other machinery you are manufacturing in house should
Then consider under which category this machine comes bye ist use means produtive/testing device life span of it
Now decide ch.id of excise you may consult one time to any local consultant.
Then clear it as normal you are doing for battery with duty invoice.
23 January 2010
Dear Mr.Paul,
Thanking you for your valuable reply. But I would like to bring your kind notice that the machinery which we have produced for our battery charging purpose and not to sale to other.
Kindly guide me regarding this.
R.d
Thanking you for your valuable reply. But I would like to bring your kind notice that the machinery which we have produced for our battery charging purpose and not to sale to other.
Kindly guide me regarding this.
R.d
BASUDEV PAUL
(Expert)
25 January 2010
Dear Mr. Ramu
If you have produced only one machine like that inhouse for use inhouse then forget excise formality just you can debit that part of duty amount which involve with parts of the assembled machine.
Or if you want to produce more than one and use the all machine for own use then also you have to do the amendment procedure of your certificate of registration.
Duty liability will as below.
RULE 8. Where the excisable goods are not sold by the assessee but are used for consumption by him or on his behalf in the production or manufacture of other articles, the value shall be [one hundred and ten per cent] of the cost of production or manufacture of such goods.
If you have produced only one machine like that inhouse for use inhouse then forget excise formality just you can debit that part of duty amount which involve with parts of the assembled machine.
Or if you want to produce more than one and use the all machine for own use then also you have to do the amendment procedure of your certificate of registration.
Duty liability will as below.
RULE 8. Where the excisable goods are not sold by the assessee but are used for consumption by him or on his behalf in the production or manufacture of other articles, the value shall be [one hundred and ten per cent] of the cost of production or manufacture of such goods.
SANJAY JAIN
(Expert)
09 March 2010
Dear Ramu,
Please come on very simple.
In general excisable goods falling under Chapter 82, 84, 85, 90 qualify as the capital goods and raw material used in the manufacturing of these capital goods in house are with in ambit of input on which CENVAT credit is allowed as per the explanation to the definition of input in Rule 2(k) of the CENVAT Credit Rules,2004.
Further there is a exemption Notification 67/95-CE dated 16.03.1995 which exempts capital goods manufactured in a factory and further used in side factory.
In view of the above, the procedure is required to prepare the proper invoice under Rule 11 for the removal of capital goods inside factory. Here by applying the valuation rules, the assessable value shall be constructed on the basis of cost of production and profit margin in terms of the Rule 8.
For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana).
Please come on very simple.
In general excisable goods falling under Chapter 82, 84, 85, 90 qualify as the capital goods and raw material used in the manufacturing of these capital goods in house are with in ambit of input on which CENVAT credit is allowed as per the explanation to the definition of input in Rule 2(k) of the CENVAT Credit Rules,2004.
Further there is a exemption Notification 67/95-CE dated 16.03.1995 which exempts capital goods manufactured in a factory and further used in side factory.
In view of the above, the procedure is required to prepare the proper invoice under Rule 11 for the removal of capital goods inside factory. Here by applying the valuation rules, the assessable value shall be constructed on the basis of cost of production and profit margin in terms of the Rule 8.
For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana).
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