If the company A (manufacturer of excisable goods) wants to remove the goods to the company B (also a manufacturer of excisable goods) for some purpose, say, for weighment of goods or bagging and loading, whether this can be done without payment of duty?
1) Company A will use gate pass to send material to company B for weighment or other purpose. 2) After the purpose is over, the material may return to company A or may be sold directly, but will be invoiced from company A after the purpose in company B is over. 3) For using the facility in company B, company A will enter into an agreement with company B. 4) Company B will use separate stationeries for the activity carried for company A.
Can any one with good tax background give remarks whether the above is possible as per indian CE law? If not, what is the way for company A to send the material to company B for availing their facility and get back the material, all without payment of excise duty? pl help.
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