14 October 2011
Sir i m an accountant in a trading company who is going to start manufacture of some motor vehicle parts by introducing its new division for manufacturing we transfer the manufactured product from new division to trading unit by merely an entry of stock transfer and then the goods are sale to outsider by billing through trading unit. will this adjustment can save the excise liability if no at which point excise liability arises.
14 October 2011
In accordance to Excise rules/laws applicable,no excisable goods, on which any duty is payable, shall be 'removed' without payment of duty from any place, where they are produced or manufactured, or from a warehouse, unless otherwise provided. The word 'removal' cannot be necessarily equated with sale. I am of the opinion in the instant case that it tentamounts to contravention of excise rules by not making the payment of excise duty while removing the goods from manufacturing premises, book adjustment by way of transfer entry will not provide any safeguard as such.
CAclubindia
