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

Transfer of duty exempt inputs between registered units requires LTU intimation and compliance or duty payment if not utilised.
Transfer of inputs procured without payment of excise duty under the end use procedure is permissible between registered premises of the same taxpayer subject to LTU intimation or permission, proper transfer documentation, fulfilment of conditions that the inputs be used in manufacture or exported within the prescribed time frame, and payment of excise with interest by the recipient if such conditions are not met.