Inter Plant transfer of Capital goods

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..... Inter Plant transfer of Capital goods
Query (Issue) Started By: - RAJESH NEELAKANTA IYER Dated:- 8-11-2013 Last Reply Date:- 18-11-2013 Central Excise
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Central Excise
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 p .....

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..... ay 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 .....

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..... 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 .....

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..... 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 Reply By PAWAN KUMAR: The Reply: I .....

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..... n case of Inter Plant Tranfer of capital goods as such, transaction value is not applicable. Reply By Pradeep Khatri: The Reply: 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.
Discussion Forum - Knowledge Sharing .....

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