Unused Machine taken to our 2nd Factory.

[Samik Chaudhuri]

Sir

I would like to know a Fryer Machine is received from China on Sept.2014 and we took cenvat credit also but later it is decided to send the said unused machine to our 2nd Factory which is the out side of the state and we raised Removal of Capital goods (stock transfer) invoice and send the material asked the 2nd Factory not to take any Cenvat credit. Am i right or wrong? Please suggest me.

With thanks and regards

Samik Chaudhuri.

[PAWAN KUMAR]

Dear Sir,

You have to reverse the amount equivalent to Cenvat credit taken on such machine while sending the same to your 2nd factory under cover of the excise invoice.

[MUKUND THAKKAR]

Sir,

Stock transfer invoice is applicable in case of transfer your FG.

capital goods is not your FG. in such case you have to generate excise invoice and pay the excise duty and SAD of 4% if you have availed.

[Mahir S]

Yes, agreed with above views.

AI Summary

Company Must Reverse Cenvat Credit on Transferred Fryer Machine; Issue Excise Invoice and Pay Required Duties A company received a fryer machine from China and claimed Cenvat credit. Later, it decided to transfer the unused machine to a second factory in a different state. The company issued a removal of capital goods invoice and instructed the second factory not to claim Cenvat credit. Responses from the forum advised that the company must reverse the Cenvat credit taken on the machine. Additionally, it was noted that an excise invoice should be generated, and excise duty and Special Additional Duty (SAD) of 4% should be paid if availed.