Inter unit Transfer

[RAM SHARMA]

Dear Experts,

We are registered manufacturer in central excise. We are produced different type of product in our one plant and another plant. We want to transfer some product to another plant. What will be the excise formalaty in this regard, secondly can we take cenvat credit on this product in another plant.

Thanks

AI Summary

CENVAT credit transfer restrictions require duty payment or reversal on inter unit transfers to permit recipient credit.
Inter unit transfers impose different excise and CENVAT consequences depending on the goods: inputs transferred 'as such' require reversal or payment equal to CENVAT credit availed; finished goods cleared for further manufacture at another unit require duty assessed on a cost based valuation for captive consumption where independent market prices are unavailable; semi finished goods may allow recipient CENVAT credit if duty is discharged. CENVAT credit cannot be freely transferred between units except in limited circumstances and taxpayers must reverse credit proportionately on input transfers.