Inter unit Transfer

[RAM SHARMA]

Dear Experts,

We are registered manufacturer in central excise. We want to send our child part to our 11nd unit from 1st unit for further production. Our 11nd unit manufactured semi finished product and again send to 1st unit for manufactured final product. how can we do that all these procedure in excise point of view and what will be the legal obligation.

Thanks

AI Summary

Manufacturer Seeks Guidance on Transferring Parts; Follow Notification 214/86-CE and Rule 8 for Excise Duty Compliance A registered manufacturer in central excise seeks guidance on transferring child parts between two units for further production. The first unit sends parts to the second unit, which manufactures semi-finished products and returns them for final production. An expert suggests following the job work procedure under Notification 214/86-CE. Another inquiry is made about CENVAT credit accumulation, noting higher accumulation in the second unit. It is advised that the first unit can take credit for semi-finished goods, while the second unit should pay excise duty based on Rule 8 of the Central Excise Valuation Rules.