removal as such

[Dalia Felix]

We had purchased certain capital goods for diversifying our product portfolio. The capital goods has not been installed and cenvat credit is not taken.

now, we are planning to set up another company and manufacture and market the new product under it. how can we manage so that the new company gets the cenvat credit of the capital goods? (since the invoice is in the name of the first company)

AI Summary

Cenvat credit transfer: seller should take full credit, invoice with duty debited to enable purchaser's input credit.
Advises that the seller should first take full CENVAT credit on the capital goods, then transfer the goods to the new company on invoice after debiting duty in its CENVAT account so the receiving company can claim credit under rule 4(2)(a) of the Cenvat Credit Rules, 2004; if partial credit was earlier availed, remaining credit must be taken and excise reflected on invoice. Freight is excluded from transaction value under Rule 5 but may be recovered from the consignee; excess freight charged over actual may affect assessable value as discussed in cited precedents.