Custom Clearance by Sister unit

[BRIJMOHAN GOYAL]

Sir,

We are manufacturing Power Plant equipment at different location . We are having one IEC Code with different Branch Code for each Unit. Your expert views are requested for :-

1. Unit X placed an order on Vendor A for import of raw material , LC also established by Unit X. now, as per LC terms , documents are in the name of unit X i.e. Invoice, packing list, B/L etc addressed to Consignee and notify party as address of Unit X and Purchase order is also issued by Unit X.
2. Now, our Unit Y ( under same IEC code with different Branch code) can file B/E in their name on the documents of unit X and take delivery .

Pl forward your views

AI Summary

Bill of Entry endorsement permits transfer of imported inputs between branches enabling receipt and cenvat credit by receiving unit.
Imported consignments invoiced to Unit X under a common IEC may be delivered to Unit Y either by filing the bill of entry under Unit Y or by converting the transaction into a high sea sale so Unit Y clears the goods; alternatively, Unit X can clear on its BE, pay duty, and endorse the bill of entry to Unit Y, after which Unit Y takes possession and claims cenvat credit.