Bill to Shift to in Import

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..... Bill to Shift to in Import
Query (Issue) Started By: - RAJENDRA KHOMNE Dated:- 3-6-2016 Last Reply Date:- 3-6-2016 Customs - Exim - SEZ
Got 3 Replies
Customs
Sir, Good morning We want to procure a machinery through import on bill to ship to basis, purchase order will be issued accordingly, The seller would issue bill in our company name and the machinery would be shipped to other co .....

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..... mpany. I want to know that in such type of transaction can company to whom machinery would be shipped take excise credit on the base of custom bill of entry. Pl explain with cenvat credit rule. Thanks Khomne R. M. Reply By KASTURI SETHI: The Reply: Sh.Rajendra Khomne Ji, Cenvat Credit is allowed to the other company who is de fecto a manufacturer and would use the imported machine for manufac .....

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..... ture of excisable goods (dutiable). It is covered under Rule 9(1) of Cenvat Credit Rules, 2004, "The credit shall be taken by the manufacturer ...................... Undoubtedly the other company is a manufacturer for manufacture of excisable goods. However, you will have to take shelter of case laws. There is a number of judgements on this issue. You are well aware. For cenvat Credit there a .....

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..... re two basic requirements:- .CE duty must be paid. Inputs/capital goods must be used in or in relation to the manufacture of dutiable final product. In your case both the parameters stand conformed. In order to avoid double availment of credit and audit objections, you must endorse Bill of entry ( which is in your name) to the other company who would use machine. Thus your company would not b .....

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..... e prone to litigation. This is my view. Reply By RAJENDRA KHOMNE: The Reply: Thanks Sir Reply By Ganeshan Kalyani: The Reply: Sir, the document should also be in the name of manufacturer availing the credit. Thanks.
Discussion Forum - Knowledge Sharing .....

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