GOODS CLEARED UNDER DSIR (R &D) UNIT

[SURYAKANT MITHBAVKAR]

We have cleared two machine under DSIR (R &D Unit) to our customer on 25/11/14 in one invoice without payment of excise duty.

We have paid @6% on assessble value of invoice as payment of excise duty to department in next month under the Excise Law Act.

Now, our customer requirement is they want to transfer one machine to their excisable unit on permanent basis and request us for solution for the same.They are ready to pay excise duty on the same machine which they want to transfer to their excisable unit.

Please advise which procedure we have to adopt for the above transaction.

AI Summary

Duty re-assessment for R&D-exempt goods: secure evidence of payment or follow return-and-reclearance to enable credit or reversal.
Where machinery removed under an R&D exemption is to be transferred to an excisable unit, obtain an excise certificate evidencing duty payment so the recipient may claim credit (subject to time limits) and perform proportional Cenvat credit reversal; or effect a return of the equipment to the supplier and re-clear the specific machine to the excisable unit on payment of duty after complying with excise return and re-clearance procedures.