Transfer of duty free Machinery one unit to another unit in same organization.

[Anshuman Singh]

Hi,

Can we take prmission form excise deptt. for transfer of duty free machinery one unit to another unit in same organigation.

Whether it not required than can we transfer the same on challan??? please suggest urgently.

If it is required please giude us about excise rule no.

Thanks,

Anshuman Singh

[Rajagopalan Ranganathan]

Sir,

You have said that the machinery is duty free. Therefore I presume that no credit of duty on that machinery had been availed by you. In such a case you can freely transfer the machinery under your own challan to the other unit in the same organisation. You are not required to take any permission from the Department.

[KASTURI SETHI]

Sir,

I think he has imported machinery duty free under some scheme. Cenvat is not the issue. Organisation is same but unit is different and has separate registration in Central Excise and also in Income Tax. Legal entity of his another unit is separate. The issue is to be examined from that angle. This is my opinion.

[Ganeshan Kalyani]

In my view the machinery can be transferred to another unit.

[KASTURI SETHI]

Sir,

The questioner is asking for authority.

[CSSANJAY MALHOTRA]

Machinery has to be transferred on Payment of an amount equivalent to the CENVAT Credit availed after providing for depreciation as provided in Rule 3(5A) of CCR. Further if the amount arrived after depreciation is less than the amount equal to duty payable on transactional value, then the amount so paid shall be equivalent to Transactional Value.

If the machinery has been procured duty free against any Import Scheme, then the machinery has to be transferred after completion of Export Obligations and the amount of duty has to be arrived at following the above stated principles.....

[Suryanarayana Sathineni]

Dear Mr. Singh,

Your query is not clear as already stated by Shri. Kasturi Sethi Ji. You have mentioned that the equipment is duty free. In this situation, is it imported under

Zero duty EPCG Scheme or Under R&D exemption or underList 22 . You may to confirm

However, Transfer of Duty free materials/equipment is government by the scheme in which it was imported/procured and on the Notification issued thereunder. Further, if the equipment is imported under EPCG and the other unit also covered under the said authorization, you can transfer under an intimation to DGFT and jurisdictional excise Range with in the acknowledgement from DGFT. If the second unit is not covered in the authorization, you may have to include the said unit in the authorization before such transfer.

If the equipment is procured under R&D exemption or under list 22, you cannot transfer the equipment for a period of 5 years as per the condition of the notification.

Hope it is clear

Best Regards

Suryanarayana

AI Summary

Transfer of duty free machinery permitted within same organization subject to scheme conditions and possible duty equivalent payment. Where no CENVAT credit was availed, duty free machinery may be transferred on the organization's own challan without permission. If the machinery was obtained under an import/concessional scheme, transfer is governed by that scheme and its notification: EPCG transfers require the receiving unit to be covered or included in the authorization with DGFT/excise intimation; R&D or list based exemptions may prohibit transfer for the notification period. If CENVAT was availed or scheme rules require duty, payment equivalent to CENVAT after depreciation per Rule 3(5A) of CCR is required, subject to transactional value comparison.