CENVAT credit in goods

[Harikrishnan V A]

Sir,

I'm working in the procurement section of a Power Transfomer manufacturing firm situatd in Kerala. We source most of the raw materials from north indian suppliers/manufactirers. Most of our customers are also in Northern side of India. Transformer oil is one of the rawmaterial and which we just fill in the tank of the transfoemr before dispatch. This can be done from the site/customer's end also. If we could dispatch the same from our supplier to customer's site huge amount of freight can be saved. Is there any provision to avail CENVAT credit for direct dispatch of oil from our supplier to customer as we are un necessarily wasting our money (freight) and time ( travel time).

AI Summary

Transformer Manufacturer Seeks CENVAT Credit for Direct Oil Dispatch; Permission Needed from Central Excise Commissioner An individual from a transformer manufacturing company in Kerala inquired about the possibility of availing CENVAT credit for directly dispatching transformer oil from their supplier to the customer's site to save on freight costs. The response clarified that while there is no direct provision for such transactions, they can seek permission from the Commissioner of Central Excise by detailing the situation. The process would involve a 'Bill to Ship to' transaction, and they might also need approval from the VAT Commissioner. It was advised to consult with an Indirect Tax Consultant for further guidance.