Transfer of unused raw material to the principal manufacture

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2011 we are doing job work for xyz ltd.

XYZ ltd has many job workers like us in other states also.

details:

Raw Material received 100kgs used 80kgs but cenvat credit avail on full qty(as the RM is exclusively used for Excisebale goods)
Now xyz ltd(principal) want to transfer the balance 20kg to an another job work site of his, outside the state.
Xzy ltd is ask his first job worker to reverse cenvat credit on 20kgs and transfer the cenvat credit by issuing an excise invoice in the name of another job worker of his, out side the state.

Query:
1) whether the 1st job worker can raise invoice in the name of other job worker out side state.
2) what is the implication of CST.

S.P.Mahanta

S.P.Mahanta (Expert)
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31 October 2011 Answer to query:-
1) 1st jobworker can raise excise invoice unde rule 11 of central excise rule 2002 on excess raw material sent to another jobworker outside state.

2)Since no transfer of ownership,CST shall not be applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2011 thanks a lot Mr.Mahanta.

iam getting different views on same questioned..

please help to safeguard myself before issuing such invoice.

once again i am putting up the detail:

XYZ ltd is a principal manufacturer.
having Contrant Manufacturing Unit (CMU) in different states.

Raw material purchased by XYZ ltd.
It is received by CMU as:

Consignee:
XYZ Ltd
A/c CMU
West Bengal

Buyers:
XYZ Ltd
A/c CMU
West Bengal.

Details of Material received in 100kg of RM Full cenvat avail on 100kgs in sept as it is exclusive material.

Some 20kgs of RM is opening stock in OCT, Now XYZ ltd want to send the materials outside the state for which they will raise a stock transfer invoice and insisting CMU to raise excise invoice in the name of his other CMU outside the state, showing the Excise duty as tranfer of Cenvat to the CMU outside the state.

My question is: As i Have received the Invoice as XYX Ltd, A/C CMU, West Bengal, how can i return the cenvat credit XYZ Ltd, CMU outside West Bengal(who is not related to me), Bangalore.

Please help!

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S.P.Mahanta

S.P.Mahanta (Expert)
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04 November 2011 1)There is no restriction in transfer of excisable goods on which cenvat credit availed from one state to another.

2)In case of stock transfer no CST payable but form F to be issued.

3)Transfer to be against excise invoice showing same duty taken as cenvat credit.

4)Mention inv: no/ dt: against which material originally received from principal manufacturer, preferably with copy of invoice.

Hope this resolve your query.