Transfer of Capital Goods by unit covered under Large Tax Payer Unit

[Pradeep Jain]

Dear Sir,

Our Company is member of Large Tax Payer Unit , New Delhi , having 3 units at different location. In case of transfer of Capital goods from one unit to another unit do we need to pay Excise Duty on such capital goods.

Kindly give your valuable opinion.

Regards

Pradeep Jain

AI Summary

Transfer of capital goods requires reversal and re availment of Cenvat credit under Rule 12BB, with case law support.
Transfer of capital goods between units under a Large Taxpayer Unit requires reversal of the Cenvat credit by the sending unit and re availment by the receiving unit, with the detailed procedure governed by Rule 12BB of the Central Excise Rules and supported by appellate decisions favoring taxpayers when procedural compliance and proper documentation are followed.