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TMI BlogCentral excise on branch transferX X X X Extracts X X X X X X X X Extracts X X X X ..... We are having manufacturing plant at Gujarat where we manufacture textile machine. Certain parts of machines are manufactured, some are procured and some are imported. We would like to keep some spare parts at Tamilnadu to serve the customer of south region. If we are making branch transfer what is the impact of central excise on these parts which are manufactured in the plant, procured from local ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vendor and imported from out of India. If we have taken cenvat credit on local purchased how it is to be dealt. - Reply By KASTURI SETHI - The Reply = Concept of stock-transfer is not applicable in the situation described by you. Regarding bought out items and imported spare parts, Cenvat Credit has to be reversed as it is removal of inputs/parts/components as such. Regarding removal of par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts manufactured in the factory, you will have to clear the same on payment of CE duty. - Reply By sankar s - The Reply = Dear sir Thank you for your clarification. Would like to know can we pass on the Cenvat credit to our customer when it is sold to customers for all these kind of parts - Reply By Himansu Sha - The Reply = The credit reversedf when the goods are transferred to your sister u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nit can be taken as credit there. Also the duty paid in the case of manufactured goods can be taken as credit there. The pre condition is that the other unit should be a manufacturing concern. - Reply By KASTURI SETHI - The Reply = I think here is not a manufacturing sister concern. - Reply By Himansu Sha - The Reply = If the sister concern is not a manufacturing concern, the scope of taking c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit on the capital goods diminishes as the credit can not be utilised. - Reply By Ganeshan Kalyani - The Reply = The input used in manufacturing excisable goods is an eligible credit. Excise duty is payable on removal of goods from factory. If the goods are stock transferred to your own location in another state and subsequently if the goods are supplied to customer from location and if the cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stomers are manufacturer then the location can pass on the credit. Otherwise cannot. If input purchased in the factory is removed as such the propotionate Cenvat credit is required to be reversed. - Reply By sankar s - The Reply = Kindly clarify my understanding is correct: 1. In case of manufactured parts transferred to our location in other state : Excise is to be charged and if parts a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re sold to customer (manufacturer) then same Cevat can be passed on to customer 2. In case of local bought out parts transferred to our location in other state : The cenvat credit taken is to be reversed. Excise is to be charged and same can be passed on to customer when sold. 3. In case of imported parts transferred to our location in other state: CVD AED credit taken is to be reversed. Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise to be charged and same can be passed on to customer when sold. - Central excise on branch transfer - Query Started By: - sankar s Dated:- 25-4-2017 Central Excise - Got 7 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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