transfer of capital goods from unit 1 to unit 2

[deepak VORA]

Dear Sir,

I am having two units having different excise number but under same range producing similar products.

I want to transfer one old machine running in unit 1 to unit 2. Can i transfer the same using an annexure or do i have to make an invoice. Please guide.

Further i have also purchased one machine in unit 1 but the same also to be installed in unit 2 now. The invoice already received and accounted in unit 1?? How can i install this machine in Unit 2 without making an invoice??

AI Summary

Cenvat credit reversal required when capital goods transferred between separately registered units; receiving unit needs invoice to claim credit.
Transfer of capital goods between separately registered units triggers invoice formalities and cenvat credit consequences: if the sending unit availed credit it must reverse that credit on removal; the receiving unit may only take credit with proper documentary evidence such as an invoice, whereas absence of prior credit avoids reversal but prevents the receiving unit from claiming credit.