One compay has different Divisions.One Division is manufacture(on behalf of brands) division and other division trading . if manufacturing division transfer seconds and other brand stock to trading division than : will excise duty applicable for inter division transfer ? what if seconds / wast branded garments Directly purchase by our trading division from job worker ( who is working for manufacture division)?
09 July 2011
No excise duty payable on inter divisional transfer. No duty payable, since seconds garments purchased from job worker, if covered under notification no 214/86.
Thanks for Reply.But AS per excise act ,if any Excisable product use by company for captive consumption ,duty will applicable . because here neighter duty paid by job worker nor paid by our Company. actually garments made by job worker on behalf of our company(not brand company)and our company some time take undertaking that we will pay excise duty or Some time Brand company(on behalf ,WE are Working).(notification 214/86) seconds garment which is not accepted by Brand company (at the time of inspection at job worker factory) That seconds we are transfering to other division without payment of duty by us or jobworker.
11 July 2011
The activities at each stage need tobe examined to ensure that no deemed manufacture is taking place at the trading division. If only despatch takes place from there, at the time of removal to the trading division the ED has to be paid as the same would be liable on removal. Where one works under 214 with JW the JW would not pay the ED but the same wouldbe payable by the princiapl at the timeof removal to the trading division.
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