Inter Plant transfer of Capital goods, Central Excise

[RAJESH NEELAKANTA IYER]

 Notification 12/2013 amendment of CCR is as under:

(5A) (a) If the capital goods, on which CENVAT credit has been taken, are removed after being used, the manufacturer or provider of output services shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by the percentage points calculated by straight line method as specified below for each quarter of a year or part thereof from the date of taking the CENVAT Credit, namely:-

(i)     for computers and computer peripherals:

 

for each quarter in the first year at the rate of 10 percent

for each quarter in the second year at the rate of 8 percent

for each quarter in the third year at the rate of 5 percent

for each quarter in the fourth and fifth year at the rate of 1 percent

 

(ii)    for capital goods, other than computers and computer peripherals at the rate of 2.5 percent for each quarter:

Provided that if the amount so calculated is less than the amount equal to the duty leviable on transaction value, the amount to be paid shall be equal to the duty leviable on transaction value.

(b) If the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount equal to the duty leviable on transaction value.”

My Question is in the case of Inter Plant transfer of Capital goods as such, Transaction Value is applicable or not, as there is no sale.

RAJESH.N

Posts / Replies

[PAWAN KUMAR]

In case of Inter Plant Tranfer of capital goods as such, transaction value is not applicable.

[Pradeep Khatri]

Above Rules does not use the word "Sale".  These Rules says about removal.

Accordingly, transaction value would be the basis of calculation of C.E.Duty on the capital goods.