TaxTMI 
TaxTMI 
Inter Unit Transfer of Capital Goods
04 Sep 2014 
9 Replies 
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Inter-unit transfer of EPCG capital goods requires prior authorization and fresh installation certification to avoid duty liability.
Inter-unit transfers of capital goods under the EPCG scheme require prior authorization and procedural compliance: if export obligations remain unfulfilled, unauthorized removal attracts duty liability, interest and penalties; where unit addresses appear in licence/IEC/RCMC and export obligation is met, the EPCG Committee/DGFT may permit shifting provided a fresh installation certificate is submitted and relevant departments are intimated; invoicing must follow Rule 11 of the CER, 2002. (AI Summary)
Inter-unit transfers of capital goods under the EPCG scheme require prior authorization and procedural compliance: if export obligations remain unfulfilled, unauthorized removal attracts duty liability, interest and penalties; where unit addresses appear in licence/IEC/RCMC and export obligation is met, the EPCG Committee/DGFT may permit shifting provided a fresh installation certificate is submitted and relevant departments are intimated; invoicing must follow Rule 11 of the CER, 2002. (AI Summary)
Dear Experts,We have purchased some machine under EPCG scheme hence there is no cenvat credit available on that. Now, we want to remove these capital goods our other unit. Whether excise duty is applicable under rule 3(5) or 3(5)a on these capital goods. Please advice.Thanks&Regards