CAPITAL GOODS MOVEMENT

[SURYAKANT MITHBAVKAR]

We have registered under Central Excise ACT. We are running one more unit where we are doing only labour job and nor applied for excise registration. we require Capital Goods in new unit. Can we transfer the some goods from registered unit where we have availed cenvat credit for same goods if yes which procedure we have to adopt for the removal of goods from registered unit to new unit.

[Mukesh Kumar]

You need to follow the procedure prescribed under notification no. 214/86 CE read with Rule 4 of the Cenvat Credit Rules, 2004. Therefore, an intimation to the excise department about the job working activity and sending of goods from registered premises to job work unit and issuing challan under rule 4 of CCR, 2004 would be sufficient.

AI Summary

Cenvat credit transfer: notify authorities and use Rule 4 challan for sending capital goods to job-worker.
Movement of capital goods for job-work from a registered premises where Cenvat credit was availed must follow the prescribed inter-unit transfer procedure: intimate the excise department about the job-work, send goods under the authorized movement document, and issue the prescribed challan under Rule 4 of the Cenvat Credit Rules to effect removal to the job-worker unit.