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Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2015 Dear Experts

Please guide me on following issue.

A company is sending Raw Material directly to a person (hereinafter referred as MR. B) who manufacture a goods on behalf of company along with invoice copy in which person is named as consignee.

That manufactured good is now sent to go-down of company for sale in to the market.

Now company is paying excise duty on raw material purchased.

Mr B after manufacturing the goods pays Excise duty on finished goods on behalf of company and claim cenvat credit.

Mr B thereafter reimbursed by the company with excise amount.

Kindly provide me understanding on the scenario and any risk that exist in this type of transaction settlement.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 February 2015 A company only can claim cenvat credit on raw material, so A company has to pay Excise duty on finished goods.
B is doing only job work.

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2015 Dear Sir Thanks for your Prompt response.

Currently company is not paying any duty directly to Department. Company is reimbursing duty to Company B.
So i want to know whether the principal company is responsible in this for any non compliance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 February 2015 Company B is paying the duty on behalf of principal company I think there is no non compliance.

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2015 Ok sir

Can you provide me your contact nummber so that i can call you and elaborate my issue...
Please....

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