Excise duty liability on transfer of all capital goods to a new factory place

[Bhairob Chandra Bor]

Dear Sir,

We need to shift all plant and machinery & other capital goods to our new factory building . We already have the excise registration number for that plant. kindly advice the legal procedures to be full fill under the excise & service tax law. Also advice how the excise duty will be paid and claim at the new factory. though it's a same company. Are there any law for the transferring of all capital assets as it is without paying any excise duty. Is there any sales tax liability? No separate books of account are maintained but we maintain separate registers and ledger accounts for excise duty, cess, higher e.cess etc. kindly advice.

Thanks & Regards,

BCB

[YAGAY andSUN]

Dear  Bhairob,

Please check Rule 10A of CENVAT credit Rules, 2004 in this regard.

Regards,

Team

YAGAY & SUN

(Indirect Taxation Consultants)

AI Summary

CENVAT credit transfer: procedures for shifting capital goods between manufacturing sites and excise duty and sales tax implications. Relocation of all plant and capital goods within the same registered entity prompts whether such transfer triggers excise duty or can preserve existing CENVAT credit at the new factory; procedural compliance and records are central. The respondent directs attention to Rule 10A of the CENVAT Credit Rules, 2004 as the pertinent provision, and the query also asks whether sales tax arises on such transfers, noting that separate books are not maintained but excise registers and ledgers are kept.