Applicability of Excise on transfer of excisable goods

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This query is : Resolved

prashant (Querist)

13 January 2009 Dear All,

I need your expert suggestion regarding following matter at our one of client place.

We have a client engaged in manufacturing of Wires & Cables, Fittings (Harness).
They have two manufactring base one at Mahape- MIDC & other one at Taloja-MIDC.
They are transferring fully manufactured wires from Mahape to Taloja for manufacturing harness therefrom by fitting additional socket also they are clearing these Harness from Taloja pland itself.
My query is whether they are require to charge Excise Duty on such transfer. If not then pls let me know what are the provisions, rules under which we can transfer these goods without charging duty thereon and also procedural aspect for this with excise authorities,if any.

Regards,
Prashant Chavan.

Rajesh Kumar

Rajesh Kumar (Expert)

15 January 2009 Whenever any exisable goods leaves the factory, duty is payable. Thus on principles, on this stock transfer duty is payable.
IF the goods leaving the factory are such that on which cenvat credit has been taken, it can cleared under those rules. However goods must return to the principal manufacturer. If the principal manufacturer want to pay duty from the premises, where goods are being sent, goods should be cleared after payment of duty, on which the receiver of goods may take credit.

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