FREE ISSUE MATERIAL , Central Excise

[HITENDRA DAVE]

DEAR SIR

WE ARE MANUFACTURING FILTERS / MACHINERY CHAPTER 84 , OUR CUSTOMER IS VISAKHAPATNAM , WE WANT TO SENT SAME'' FREE ISSUE MATERIAL''DIRECT TO  OUR CUSTOMER VISAKHAPATNAM , FINALY FINISH GOOD DESPATCHED TO  CUSTOMER  Y TO Z  COMPANY UNDER RULE 4(6)  WITH PAYING EXCISE DUTY BY X COMPANY UNDER PERMISSION 4(6)

X- IN GUJARAT ,  Y - IN VISAKHAPATNAM  ,Z - IS ALCO IN VISAKHAPATNAM

Y AND Z DISTANCE IS APPROX 250 KMTRS

MY QUESTION IS HOW TO SENT FREE ISSUE MATERIAL TO Y  COMPANY  FOR FABRICATION

 REQUIRED PROCEDURE

REGARDS

HITENDRA  DAVE

Posts / Replies

[Radha Arun]

The question is not very clear; could you review it and clarify? Is the free issue material sent to Y or Z ? What is the commercial transaction here - who is your customer, is it Y or Z ?  What is the free issue material and what is its use? Have you taken Cenvat credit on this material?

[pradeep khatri]

Under  Central Excise Laws, Direct material from the supplier to the job-worker can be sent. Further, for controling purpose you must have to issue a challan, clearly stating that material was issued directly by the supplier.  Further, you would have to avail CENVAT credit after receiving the whole matetrial.