Excise applicable buffer stock

This query is : Resolved

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

pls advice we are manufacturer of IT Product there are two branch bangore and mumbai. banglore branch transfer goods mumbai only for buffer stock purpose.

pls advice me whether should raise branch transfer invoice or any other and valuation

Regards
praveen

U S Sharma

U S Sharma (Expert)
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11 October 2012 all exisable goods should be cleared on payment of duty, and under cover of invoice.

Pralay Chakraborty

Pralay Chakraborty (Expert)
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13 October 2012 There is a concept of "Depot Transfer" in Central Excise, on which generally Excise duty should not be levied. If that is the case, means if the goods are sent to the depot, then no excise duty to be levied under this transfer.
But, if it is a branch tranfer and both the branch have seperate Excise registration no. then in your case B'lore branch can raise the invoice with excise duty, which Mumbai branch can take credit. again am saying both the branch should have seperate Excise reg. no in order to take CENVAT credit.

Thanks.

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U S Sharma

U S Sharma (Expert)
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13 October 2012 @ CMA Pralay

no,
ED has to charged even in case of depot, if the depot is situated outside the factory then goods can not be sent without payment of duty.

however storage under godowns/ depot within the factory premises is exempt from duty.