stock transfer process

[aashish kumar]

Dear Experts,

We are two manufacturing unit in Haridwar. Unit one is non excise able and unit two is registered manufacturer in central excise. so that We want to transfer some raw material and finish goods unit-i plant to unit-ii plant. What will be the excise formality in this case. like as challenge and stock register and cenvat etc.

Thank and Regards

Aashish Kumar

[Rajagopalan Ranganathan]

Dear Shri. Aashish kumar,

Since your unit one is engaged in the manufacture of non excisable goods you cannot take credit of duty paid on the raw material received in unit I. However you can transfer the raw material under your own invoice indicating the value and duty paid as indicated in the invoice of your supplier and send it to unit II which can avail the credit.

As far as your finished goods manufactured in Unit I since they are non-excisable no duty is payable on the same. It can be transferred to unit II under your commercial invoice.

[aashish kumar]

Dear Experts,

Dear Experts our Manufacturing two type of products and we are both product manufacturing in unit-i but at this time our plan is one product manufacturing in unit-i and other product in unit ii so that i am transfer the stock (one product) unit -ii . please given the advise in related document required in excise unit.

AI Summary

Cenvat credit: raw materials transferred from a non excise unit must be invoiced to allow recipient to avail credit. Raw materials in a non excise manufacturing unit do not generate cenvat at that unit; such inputs may be transferred to an excise registered unit under the transferring unit's invoice that indicates value and duty paid per the supplier's invoice so the registered recipient can avail cenvat credit. Non excisable finished goods can be moved under a commercial invoice without excise liability; transfers should be supported by appropriate invoices and stock records to meet excise and cenvat documentation requirements.