Ram kr. (Buisness) (883 Points)
16 January 2014Dear Experts,
We are registered manufacturer in central excise. We want to send our child part to our 11nd unit from 1st unit for further production. Our 11nd unit manufactured semi finished product and again send to 1st unit for manufactured final product. how can we do that all these procedure in excise point of view and what will be the legal obligation.
Thanks
karan jit singh
(Consultant)
(1299 Points)
Replied 17 January 2014
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.
Ram kr.
(Buisness)
(883 Points)
Replied 17 January 2014
karan jit singh
(Consultant)
(1299 Points)
Replied 17 January 2014
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
vishal sharma
(Manager (Indirect Taxation))
(68 Points)
Replied 17 January 2014
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
CA Jaspreet Singh Sidana
(Chartered Accountant)
(45 Points)
Replied 18 January 2014
Mr Ram does the second unit forms the part of the same factory..i.e do they hve different excise registration?
karan jit singh
(Consultant)
(1299 Points)
Replied 18 January 2014
Please refer 4(5) (a) for detailed reference.. of CCR,2004
vishal sharma
(Manager (Indirect Taxation))
(68 Points)
Replied 18 January 2014
karan jit singh
(Consultant)
(1299 Points)
Replied 19 January 2014
Yes .you are right . and it specify the smt as per 4(5)(a)
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