Inter unit transfer

Dear Sir,

As explained by you, you have to pay simply ED on removal of goods from factory and respectively Cenvat Credit is permissible  w.r.t Rule 6(1) read with Rule 2(k) of CCR,2004.

Apology for not emphasising on Semi Finished product.

As per Rule 3(5) of CCR,2004

If input is removed as such or after partial processing (i.e Semmi finished ) from the factory then you have to pay an amount equal to the cenvat credit availed i.r.o such input and such removal should be made under an invoice in accordance with rule 9 of CCR.

Regards

Karanjit Singh

better you go for job work and its a valid method in excise

get the job work done from second unit and receive back from the seconunit to first unit under notification 214/1986.

this is going to be more feasible for you

Mr Ram does the second unit forms the part of the same factory..i.e do they hve different excise registration?

Agreed with Karan and Vishal

Please refer 4(5) (a) for detailed reference.. of CCR,2004

Yes .you are right . and it specify the smt as per 4(5)(a)