Excise duty applicable

This query is : Resolved

Praveen kumar varma (Querist)
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09 October 2012 Dear Sir,

Pls advice

We are Manufacture of IT Product. there Two Branch one is Banglore and second is Mumbai both are Excise registered. my query is we are transfer Finished goods banglore to mumbai under F Form the banglore charges Excise duty of goods removal on time send to mumbai and mumbai as it is goods sales third party on same price. our doubts is mumbai can be pass excise duty of thirt party

for Ex.
Banglore goods transfer Qty 100 of transfer Price Rs.100 to Mumbai with excise duty charges and Mumbai sale a goods same Qty 100 Selling price Rs.100/- with same excise duty pass. it is possible

pls advice me what is correct steps ?

Regards
praveen

U S Sharma

U S Sharma (Expert)
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09 October 2012 the receiving branch has to get registered under excise as dealer, and issue cenvatable invoice for cenvat purpose to the buyer.

however cenvat credit on computer is restricted, and very few type of assessee can avail cenvat credit of such items, though a dealership regn can solve the issue.

Praveen kumar varma

Praveen kumar varma (Querist)
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09 October 2012 Thank

but sir some doubts why we are register dealer. we are manufacture both branch and both branch it is same company and not first dealer ?

pls give me any article and sec.?

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U S Sharma

U S Sharma (Expert)
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09 October 2012 duty paid finish goods similer/identical to the production line can be stored / brought in the factory of manufacture,

as you are doing no manufacturing activity in such goods which are taken blr to mum, but just selling the same to buyer, its not covered under manufacture regn, so you have to obtain a dealer regn,

you have to maintain a separate storage space also for such storage, which are received as dealer capacity.( size of storage does not matter, it may be a small room even)

Praveen kumar varma

Praveen kumar varma (Querist)
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09 October 2012 Thanks sir,

Pls send link or any article and which sec. write this matter under Excise act.

Regards
praveen

U S Sharma

U S Sharma (Expert)
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09 October 2012 the whole procedure is under manual of central excise, available at www.cbec.gov.in