Payment of duty on removal of goods.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2013 Hello,
I want to know that if any goods removed from one factory of a company & send to other factory of that same company for further processing, is that to be considered as removal,also clarify payment of duty if answer is positive.

RENGARAJ R.K

RENGARAJ R.K (Expert)
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27 July 2013 If it is raw material, unit 1 has to reverse/charge the excise duty and send the material as such to unit 2. The unit 2 can take cenvat benefit based on the excise invoice of unit 1.

If it is sent for further processing it has to use challan without duty element and get it back within a time frame.

If the removal is of credit availed inputs, such inputs have to come back within 180 days of removal.

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2013 THANK YOU, SIR

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