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

AI Summary

Manufacturing Unit Queries Cenvat Credit Rules on Offsite Storage of Obsolete Machines; Seeks Clarification on Rule 4(5)(a) Compliance A manufacturing unit registered under Central Excise inquires about storing obsolete machines, categorized as capital goods, in a rented godown due to space constraints in the factory. The query seeks clarification on whether permission or intimation to the Excise Department is required for such storage, especially concerning machines with and without availed Cenvat credit. A respondent advises that under Rule 4(5)(a) of the Cenvat Credit Rules 2004, capital goods can be cleared for repair and reconditioning and returned within 180 days, suggesting maintaining records and informing the department. Further clarification with legal support is requested.