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.

 

[PAWAN KUMAR]

Duty is to be paid equivalent to cenvat credit taken on raw material being transferred to another unit as per rule 3(5) of Cenvat Credit Rule, 2004

[YAGAY and SUN]

Removal of R/M as such will attract Reversal of CENVAT credit proportionately under rule 3(5) of the Cenvat Credit Rule, 2004 amended from time to time.

[CA.Ankit Gulgulia]

Reversal of proportionate cenvat credit under rule 3(5) of Cenvat Credit Rule, 2004 and on strength of invoice under rule 9.

AI Summary

Reversal of CENVAT credit required when raw materials are transferred between units; duty or invoice compliance follows.
Transfer of raw material between units under the same PAN requires reversal of the proportionate CENVAT credit attributable to the materials removed under rule 3(5) of the Cenvat Credit Rules, 2004, and must be supported by proper invoice documentation in accordance with the invoicing rule to address duty exposure.