CHANGE OF USE OF MACHINERY

[SURYAKANT MITHBAVKAR]

We have registered with C. Excise as manufacturer of Pharmaceuticals Machinery & Equipments falls under chapter 84. Our customer are using our machinery for filling and sealing of Pharma Products. However, we are now selling our same machinery to use filling and sealing of distillation production.

Please let us guide any changes to be made with excise registration.

[KASTURI SETHI]

Have you charged any amount for usage of machinery from your customers ? If so, the period of usage. If you want to sell now you will pay CE duty on transaction value, if your turnover is above 1.50 crore during the preceding year i.e. 2015-16. Registration is on-line. You will receive registration no.within two days from the date of application.

[Suryanarayana Sathineni]

Dear Friend,

Since you have already registered to manufacture Pharmaceutical machinery under Central Excise, even in the event of improvisation in terms of multiple application on an equipment which was earlier limited to one or two applications, there is no requirement to amend the registration except, if you manufacture a different category of product other than the pharmaceutical machinery.

Further, the improvised multi application machine if sold now, obviously as stated y Shri. Kasturi Sethi ji, you have to pay duty on the transaction value ( may be higher value than the value of earlier machine having limited applications sold earlier)

Best Regards

Suryanarayana

[Ganeshan Kalyani]

Sir in my view central excise registration certificate is required to be amended optionally when, inter alia, new product is going to be manufactured. Bringing in machinery and removing machinery is not connected with amending excise certificate. This is expressed by Sri Surya Sir also. Thanks.

[Rajagopalan Ranganathan]

Sir,

If you have taken registration certificate for manufacturing machines falling under Chapter 84 of CETA, 1985 you need not amend your registration certificate. If the same falls under different sub-heading depending upon end use then you may request your Range officer to amend the registration certificate including the new sub-heading in the registration certificate. This can be done online.

AI Summary

Excise duty on sale: selling machinery for a different end use can trigger duty and may require registration update. When machinery originally manufactured for pharmaceutical filling and sealing is sold for use in distillation, duty is payable on the transaction value where statutory thresholds are met; registration under Chapter 84 remains valid for the same category of machinery and need not be amended solely due to additional uses. An amendment to registration is required only if the manufactured product falls under a different tariff heading or distinct product category, in which case the manufacturer should seek online amendment to reflect the new sub heading.