27 June 2009
Dear Sir,Madam, We have two units. All are registered with Central Excise. We have purchase 100M.T of raw material in Unit-I. We have take the cenvat credit in Unit-I also. But after some time later we have despatched the 100 M.T of Raw material to out Unit-II. When send to Unit-II we have prepared Invoice and pay same duty which we have taken in Unit-I. Now my question is wheather this procedure is OK. With regards, R.Dutta
27 June 2009
See as far as Excise law is concern it gets attracted as soon as goods are removed from the factory. The procedure is perfectly correct and you can take the benefit of tax paid by unit 1 n unit 2 when goods are further removed from the factory bt there is one alternative route as well which require presence of Excise officer which will definetly not a sound practice to follow.
CAclubindia
