Cenvat credit on import

We have two manufacturing facilities one in Jammu and other in NOIDA.

At the time of import of material, we have entered address in Bill of entry of Jammu unit. Lateron when, we were taking out the material from Tuklakabad Depot, we come to know the requiremet of material in NOIDA unit.

In this case, my query is:

1. whether, we can take the material to NOIDA unit instead of Jammu unit. If yes, what safegaurd, we should take.

2. Whether, we can avail Cenvat Credit on such material on the basis of Bills of entry.

I will be highly obliged, if reference of circular or notiofication in this regard , if any is also provided.

Replies (6)

Yes, we can take credit on the basis of bill of entry as per Rule 9(1) of Cenvat Credit Rules, 2004.

You may face two problems if consignment is directed to Noida plant. One, VAT check post may detain goods alleging diversion of consignment. Two, cenvat credit may be questioned by CE department.  I suggest documentation as if goods have been received at Jammu plant . Raise invoice on Noida unit with duty pass on. Show it as interunit transfer against form F, as such no CST. Use inerstate delivery note under CST for transportation.
 

You can take the credit based on the bill of entry at jammu

You can transfer the material to Noida as cleared as such methed.  You can reverse the duty at Jammu and the take credit at Noida.  Tax not cover for transfer and it is not for sale.

Thanks for the reply.

But our problem is - No raw material can be transferred from Jammu unit to any other State as per Law. So there is no question for transferring the raw material (Inter unit against form 'F').

Any other solution will be very helpful.

 

atul jain

1.  You can make correction in your BOE with customs endorsment.

2.  You can take credit at Noida, if the above changes is made in your BOE.

That is enough to transfer your material to Noida and take credit at Noida.

If any more clarifications, kindly revert to us..

 

You can approach Customs authority for correction in importer's address.
 

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