Applicable excise duty in case of relocation of Fixed Assets

[Bhairob Chandra Bor]

Dear Expart,

we are under the preparation of transfer of all Movable fixed assets to a new location. New location is 200 meters away from the old one but excise registration is different. A single Books of accounts is maintain. what should be the transaction value of exercisable fixed assets to be transferred to the new location. these includes of assets for more than 18 years but WDV is nil. kindly advice for the transaction value to be considered for paying the excise duty:

1. where WDV is nil

2. where WDV has some value.

kindly also advice for the separate rates is applicable as per excise laws to be used for calculating the transaction value.

AI Summary

Excise valuation on relocation: use insurer or certified valuation when WDV is nil, or specified depreciation method when WDV exists.
For relocation of movable fixed assets between differently registered premises, if WDV is nil adopt a certified valuation or the insurance cover value; if WDV exists apply the prescribed depreciation/deduction method under the Cenvat Credit rules. Very old assets may be removed duty free on an excise invoice or challan with prior intimation to the excise department; valuation need only be recorded if required.