TMI BlogInter unit TransferX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts, We are registered manufacturer in central excise. We are produced different type of product in our one plant and another plant. We want to transfer some product to another plant. What will be the excise formalaty in this regard, secondly can we take cenvat credit on this product in another plant. Thanks - Reply By MUKUND THAKKAR - The Reply = Dear Sharma, your questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on is not clear, you want to transfer the finished goods or rawmaterial,? or transfer the product raw material at other units.? if you plan to transfer the inputs (RM) than you have to pay the exciseduty as input as such. and take cenvat credit in another plant. but.. 2, if you plan to transfer the FG to your other plant, than you have to pay excise duty fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m your existence plan no cenvat credit is avaible to your another plant. 3. if your product is semi finished and another process will be carried out on another plant , in such situation , you can take the cenvat credit. - Reply By Ashok Jogalekar - The Reply = If you are transferring Inputs you have to pay excise duty equal CENVAT credit availed on such inputs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If you are clearing products manufactured by you to your other unit which are going to used for further manufacturing by your other unit, then, excise duty will have to be discharged on 110 percent of the cost of production / manufacture of such goods under Rule 8: RULE 8. Where the excisable goods are not sold by the assessee but are used for consumption by him or on his behalf in the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduction or manufacture of other articles, the value shall be [one hundred and ten per cent] of the cost of production or manufacture of such goods . - Reply By RAM SHARMA - The Reply = As per rule 8, weather a unit take cenvat credit of material received by inter unit for self consumed. - Reply By Ashok Jogalekar - The Reply = Rule 8 is for valuation for discharge of duty liability. Howev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the recipient unit can avail CENVAT credit if the the item received is used in / in relation to manufacturing and on clearance of which Duty is discharged. - Reply By RAM SHARMA - The Reply = We have given a contract to out side party for developing and fabricating capital goods in our premises as per our norms. We are providing all material for such capital goods. After developed the su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch capital goods we want transfer to our other unit. Secondly, we want some material for lab testing to our inter unit. what will be the legal procedure both the cases. - Reply By Ashok Jogalekar - The Reply = Please refer your issue to Advocate since your new query would need lot of discussion / answers. - Reply By phani raju konidena - The Reply = 1. If you want to clear your input goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (raw material) then you can take first the CENVAT credit and debit the same proportionately at the time of clearing the goods 'as such' by mentioning all the details of purchase invoice on your own excise invoce. 2. If you want to clear your Finished Goods to your other unit for 'captive consumption' (for further manufacture of excisable goods) purpose, then you pay the central excise duty as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicable subject to the price adopted to the independent buyers as per Rule 4 of Valuation Rules, 2000 . basing on the Larger Bench decision in the case of "ISPAT INDUSTRIES LTD.," OR If the independent buyer's price is not available, in the sense, the entire production is cleared to your other unit for captive consumption, then you have to pay the Central Excise duty as per CAS-4 under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 8 of Valuation Rules, 2000 . - Reply By Anup Kabra - The Reply = we are manufacturer of pharmaceuticals product having 4 units id different jurisdiction. my question is can we transfer cenvat credit one unit to another unit without transfer of any FG/RM/PM and semi finished goods. - Reply By phani raju konidena - The Reply = Dear Mr.Ram Sharma, a) Vide Notn.No.14/2013-CE(NT) d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td.22.11.2013 (w.e.f 01.12.2013), the Rule 8 , 9 and 10 of Valuation Rules, 2000 have been amended. Accordingly, if the finished excisable goods are cleared to your other units of the same company for further manufacture (Captive consumption) then you have to pay the duty @110%. b) if you want to clear the raw material to your other units, then you have to reverse the duty proportionate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly the cenvat credit availed. c) there is no option in the Central Excise law to simply transfer the cenvat credit from one unit to other unit, which is only possible if you are in 'Large Taxpayer Unit'. - Reply By Pradeep Khatri - The Reply = Dear Anup/Phani Raju, Rule 12A of CENVAT Credit Rules, 2004 has been amended so as to disallow transfer of credit by a large taxpayer from o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne unit to another. This is for your kind information. Regards Team YAGAY and SUN (Management and Indirect Tax Consultants) - Reply By Naveed S - The Reply = Mr. Anup, In your case, you can transfer the cenvat credit availed on Additional duty due to import of goods, from one unit to your another unit. - Inter unit Transfer - Query Started By: - RAM SHARMA Dated:- 4-11-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 013 Central Excise - Got 11 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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