Shifting of capital goods

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Sudhakar Reddy T (Querist)
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16 December 2009 Dear Sir,
We have a manufacturing unit under one excise range. And we are planing to open another production unit, it is comming under renge 2, and also we are shifting some machinery from unit-1 to unit-2,in this regard to whom I need to inform like we are shifting the machinery. And where I need to get to permission to move on. One more on shifting machinery we are already taken Cenvat Credit.

Please give right direction how to do and how need get permission.

SANJAY JAIN

SANJAY JAIN (Expert)
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17 December 2009 That provisions regarding shifting the factory are outlined vide Rule 10 of the CENVAT Credit Rules,2004. In this provision, the transfer of CENVAT Credit balance is allowed only if Input(as such or in process) or capital goods are also transferred alongwith the credit balance to the satisfaction of jurisdictional Assistant Commissioner. So application is to be preferred to the Assistant Commissioner having jurisdiction over the transferring factory. Though transferring of credit to the extent of inputs and capital goods is not bar. As tribunal in the matter of Sunpack v/s CCE,Pondichery[ 2008(223)ELT 95(Tri)] has held that on shifting of the factory, the law is to allow to transfer the available CENVAT credit alongwith the inputs and capital goods not the corrosponding credit to the inputs and capital goods.

For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana)

Sudhakar Reddy T

Sudhakar Reddy T (Querist)
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18 December 2009 Dear Sanjay Jain,

Thank you very much sir,

and one more help please can you attach the link of Sunpack v/s CCE,Pondichery[ 2008(223)ELT 95(Tri)] Case study also if send that case study it is very helpful sir.

waiting for your reply.

Sudhakar Reddy T

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