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excise credit

k (partner) (32 Points)

09 June 2011

hi i would like to know if i have two units one in gujrat (manufacturing process complets there) and other in mumbai (inspection re packing lableing and export related documentation is done there)

can i get both my units registered as maufacturing and clear the goods as captive consumtion from gujrat after paying duty and take the cenvat credit in mumbai unit and apply for rebate once they are exported (goods dispatched from gujrat will be in bulk) and exported as and when export orders come period from dispatch to actual export can be 15 days to 3 years

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3 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 10 June 2011

depending on merit of goods manufactured, you can clear the goods in CKD condition or in parts, and other unit can take credit and assemble them, and clear the same on payment of duty ( value addition is to be applied ), there is no bar to addopt the process, but atleast one process should be handled by the receiving unit to confirm the manufacture,

both units would get clubbed for vaulation purpose of SSI reg 150/400 lacs

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R P Ananthakumar (Sr. Officer - Central Excise/Cash) (514 Points)
Replied 10 June 2011

"depending on merit of goods manufactured, you can clear the goods in CKD condition or in parts, and other unit can take credit and assemble them, and clear the same on payment of duty ( value addition is to be applied ), there is no bar to addopt the process, but atleast one process should be handled by the receiving unit to confirm the manufacture,

both units would get clubbed for vaulation purpose of SSI reg 150/400 lacs"

AGREED... AND IT IS THE BEST WAY TO GO FOR REBATE.

Mallikharjun (Deputy Manager) (304 Points)
Replied 11 June 2011

If there is huge gap between receipt of goods in unit 2 and its further export, then it is advisable to go for Rebate. Anyhow unit 2 repacks the goods to export worthiness, it is eligible for taking cenvat credit.