GOODS CLEARED UNDER DSIR (R &D) UNIT

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..... GOODS CLEARED UNDER DSIR (R &D) UNIT
Query (Issue) Started By: - SURYAKANT MITHBAVKAR Dated:- 24-11-2016 Last Reply Date:- 25-11-2016 Central Excise
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Central Excise
We have cleared two machine under DSIR (R &D Unit) to our customer on 25/11/14 in one invoice without payment of excise duty. We have paid @6% on assessble value of invoice as payment of excise duty to departm .....

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..... ent in next month under the Excise Law Act. Now, our customer requirement is they want to transfer one machine to their excisable unit on permanent basis and request us for solution for the same.They are ready to pay excise duty on the same machine which they want to transfer to their excisable unit. Please advise which procedure we have to adopt for the above transaction. Reply By surya naraya .....

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..... na: The Reply: Dear Friend, I am sure you might have cleared the subject machines to your customer claiming duty exemption under Notification No. 10/97-CE as amended from time to time against their giving declaration in terms of the said Notification. It is not clear from your qauery as to why you have paid 6% duty on the invoice value in subsequent month when you have cleared the machines with .....

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..... out payment of duty claiming exemption under R&D. Now that your customer is requesting them to help for their clearing one machine to their other normal unit, you may take a certificate from your excise authorities that you have paid the duty and send the same to your customer so that they will take credit of such duty based on that certificate ( if it is within the time limit of one year) and cl .....

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..... ear one machine by reversing proportionate duty in terms of Rule 3(5) of Cenvat Credit Rules,2004; or Let your customer return one equipment to your company and you will after compliance with Rule 16 of CER,2002 again clear the same on payment of duty directly to the other unit of your customer. Best Regards Suryanarayana
Discussion Forum - Knowledge Sharing .....

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