Reversal of cenvat credit for machinary transfer to another

Dear All,         

     I have some confusion about reversal of CENVAT CREDIT on Transfer of capital goods. Whether we have to reverse whole cevat credit on transfer of capital goods (Machinary ) even after we have used the machinary for 4-5years . If not please provide the suggations. The transfer of capital goods is within the same group ( same company name & management) located in different place. 

please suggest...

Thanks & Regards,

Ankush

Replies (3)

As per Rule 3(5A) of Cenvat credit Rules,2004-credit to be reversed fort P&M other than computers to be reversed as under higher of I and II:

I. Credit taken                                                                    xxxxx 

Less:(-)2.5% of input excise paid for every quarter or its part    xxx 

where No. of qtrs=Date of removal (-) Date of taking credit for the first time

II.Duty leviable on transational value of goods removed.

Credit to be reversed is higher of I and II.

 

Dear sir

please explain the option II.Duty leviable on transational value of goods removed.

 

Duty payable on tranaction value as per Central Excise(Valuation Rules)...in your case sale consideration if any received.

So Higher of I and II will be reversible.

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