tranfer of raw material of one unit of another

[MEHUL ASHAR]

Respected Sir,

                       As regarding above subject my query is that one of my clients(excisable unit) want to transfer raw material to another unit with the derivement of the same pan then the question arises that we have to charge duty according to the new amendment of the CBEC or we can clear raw material without payment of duty.Please reply as soon as possible.

 

AI Summary

Duty on Transferring Raw Materials Requires Reversal of CENVAT Credit Under Rule 3(5) of Cenvat Credit Rule 2004 A client inquires about transferring raw materials between units under the same PAN and whether duty must be charged according to CBEC amendments. Three responses clarify that duty equivalent to the CENVAT credit taken on the raw materials must be paid or reversed under Rule 3(5) of the Cenvat Credit Rule, 2004. The replies emphasize that removal of raw materials will attract a reversal of CENVAT credit proportionately, and the transaction should be supported by an invoice as per Rule 9.