TaxTMI 
TaxTMI 
Procedure for removal of capital goods for One plant to another with regards to excise duty. In this case duty will be reversed at Old rate(at the time of purchase) or at existing rate?
Mridul Sethi
Charging excise duty on capital goods sale
21 Nov 2011 
2 Replies 
6786 Views Asked by
CENVAT credit reversal on intra company capital goods transfers applies a pro rata quarterly deduction determining duty adjustment.
The operative response advises that CENVAT credit must be reversed when capital goods are removed between units, applying a pro rata quarterly deduction from the original credit for each quarter of use; this reversal mechanism, rather than charging excise at the current removal rate, governs the adjustment of credit as illustrated by the enquirer's example. (AI Summary)
The operative response advises that CENVAT credit must be reversed when capital goods are removed between units, applying a pro rata quarterly deduction from the original credit for each quarter of use; this reversal mechanism, rather than charging excise at the current removal rate, governs the adjustment of credit as illustrated by the enquirer's example. (AI Summary)