Excise Duty JOB WORK

This query is : Resolved

Krishna Marathe (Querist)
Follow

31 January 2009 Dear Sirs,

I am having some excise queries, as follows.

"A"- Company is located in Mumbai owener of brand say "DELTA" & Purchasing the goods from "B" Company with own brand sand sale it in market.

"B"- Company Is located in Delhi and manufacturing products with Brand "DELTA" for "A" Company and They dedicately manufacture this product only for "A" Company. They Can not sale this product in open market.

My queries are as foolows
=============================
1. A is Purchasing Goods with " DELTA" brand hence while removing goods froms "B" Factory Excise Duty is paid on on "B" s saleing price? Is it correct?

2)A is having Dealer Excise Registration in Mumbai. It is not always viable to bring the goods first to "A" s Company (Mumbai)and then disptch all over india. In that case.

- How to passon modvat to "A" s customer.
- Is it possibel to dispatch goods direct to the customer, from "B" s Factory to "A" s Customer.? What will be the procedure other thant E1 Transaction.

Rajesh Kumar

Rajesh Kumar (Expert)
Follow

31 January 2009 For excise purposes, duty is to be paid by manufacturer. In the present circumstance, B is manufacturer and liable to pay duty. The duty is liable to be paid on transaction value, which is being paid in the circumstances.
A is registered as dealer, and hence he is able to pass on Cenvat Credit.
To pass on cenvat directly to the A customer, B can make invoice in which A will be the buyer and A's customer will be consignee. A will raise commercial incoice (not dealers invoice) to its customer, who will pay A. On this invoice, consignee can take credit.
The concept is known as transit sale in Central Excise.

Rajesh Kumar

Rajesh Kumar (Expert)
Follow