Transfer of assets to site

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This query is : Resolved

Deepak Agrawal (Querist)

18 April 2009 Hi,

I have a doubt regarding Rule 3(5) of cenvat credit rules.

Rules says about remaoval of input & capital goods as such.

I am mnaufacturer. I remoave my asset (capital goods) and inputs to my customer site. I want to know excise implications. Whetehr i can take credit of the excise paid at the time of removal.

Whether is there provision against which i can remove without paying excise. It is mentioned abt service provider. Buit not abt manugacturer.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

21 April 2009 The background is not clear.
If you are to receive the goods back the same canbe removed under A retrunable delivery challan.
If sold for good then inputs canbe removed on reversal of credits availed and capital goods after deducting 2.5% per quarter of the credit balance to be reversed.

Deepak Agrawal

Deepak Agrawal (Querist)

24 April 2009 I WANT TO KNOW WHETHER THIS IS APPLICABLE FOR MANUFACTURER. ALSO LET ME KNOWWOTHIN HOW MANY DAYS IT SHOULD BE BROUGHT BACK ?

Rajesh Kumar

Rajesh Kumar (Expert)

24 April 2009 Even the manufacture is required to pay any duty if the goods are removed for job work. The duty is payable only when goods are not returned within 180 days.

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