Goods procured without payment of excise duty by following end use procedure

[Kadayam Ganapathy Subramanian]

Dear Sirs,

Our unit at Goa has procured the inputs under exemption from central excise duty from the supplier manufacturer by following the procedure prescribed under Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001. After using the certain quantity of said inputs in the manufacture of final product, they stopped producing such final product and the balance quantity of above inputs are lying in stock with them.

As per proviso to Rule 6 of aforesaid rules, the surplus stock if any may be returned to the original manufacturer from whom the said inputs are obtained. But we want to divert the balance quantity of above inputs to our another unit at Hosur where such final product will be manufactured by using the same.

Whether above such diversion is possible since all our manufacturing locations are coming under jurisdiction of LTU, Bangalore.

Kindly enlighten your views on this issue at the earliest.

Regards,

K.G Subramanian

e.mail ID: [email protected]

AI Summary

Company Seeks Permission to Transfer Surplus Stock Between Units Under Central Excise Rule 3(2) Compliance A company in Goa procured inputs exempt from central excise duty under specific rules but ceased production, leaving surplus stock. They wish to transfer this stock to another unit in Hosur. Experts in the forum suggest that transferring these inputs requires permission from the Jurisdiction Commissioner of Central Excise under LTU provisions. There are concerns about registration differences between the Goa and Hosur units. However, under certain conditions outlined in the Central Excise Rules, transferring goods between registered premises of a large taxpayer may be possible. Compliance with sub-rule 2 of rule 3 is crucial, and objections from the department may arise.