22 January 2012
Fact: we are manufactures of machineries for textile sector which is used in spining units.we sale under EPCG license recieved from our customers.we are having two units (Unit A and unit B). unit B was developed specifically for the purpose of a new product X which did not materialise and we stop doing activity in unit B. We are still having CNC machine over there which was purchased by us for manufacturing parts for new product X. this machine can be used for machining the castings used in our product existing product manufactured in unit A. we are also having cenvat credit at unit B, which we want to utilise. we would like to use that credit as per following transaction. can we do that:
Transaction: we will import the casting without paying the duty as we will import against advance license. we will conduct machining process on these imported casting and transfer it to unit A. on this value addition we will pay excise from unit B and take credit in unit A.
CAclubindia
