Storage of Capital Goods such as Machines outside of Factory

[PANKAJ GUPTA]

Dear Sir,

We have manufacturing unit registered under Central excise and paying excise duty on our final product and taking Cenvat on Input, Input Service and Capital goods.

Our some of the machines (Capital goods) has been obsoleted and we want to store these machines at other place i.e. Godown taken on rent due to shortage of space in factory and reconditioning the same in Godown.

In that case, please confirm us whether we have to take permission from Excise department or we have to give intimation in Excise department for storage of machines outside factory i.e. Godown for the above reason.

Is there is any provision in central excise for storage machines outside factory. Please confirm also can we shift machines in Godown without any permission from Central excise deptt. or intimation in excise department. Please give reply by covering both situautions i.e machines on which we had taken Cenvat and Machines on which we had not taken any Cenvat.

Regards

Pankaj Gupta

M-09212401641

[B. Naga Rami Reddy]

Sir,

You can clear capital goods under Rule 4(5)(a) of Cenvat Credit Rules 2004 for repair and reconditioning and bring the goods back in 180 days. You have to maintain record of such clearance and it is better to keep the dept informed.

[PANKAJ GUPTA]

Dear Mr. B.Naga Rami Reddy

Please send your reply in line of query raised by me with supporting of applicable excise law.

Regards

Pankaj Gupta

AI Summary

Cenvat clearance for capital goods allows removal for repair with mandatory return within the prescribed period and record maintenance. Capital goods may be cleared from the factory for repair and reconditioning under Rule 4(5)(a) of the Cenvat Credit Rules, on condition that the goods are brought back within the period specified by that rule; records of such clearance must be maintained and informing the excise department is recommended.