CLEARANCE TO R & D UNIT

[SURYAKANT MITHBAVKAR]

If we clear materials to R and D unit without payment of excise duty under Notification No. 16/2007 C.E. dated 01.03.2007.

In view of the above we have to pay @6% on assessable value as excise duty by way of reverse cenvat credit used to Manufacturing the same Material.

Pl. advice us it is correct or not.

AI Summary

Materials for R&D Unit Must Pay 6% Excise Duty via Reverse CENVAT Credit Under Notification No. 16/2007 C.E. &D A query was raised regarding the clearance of materials to an R&D unit without excise duty payment under Notification No. 16/2007 C.E. dated 01.03.2007. The inquirer asked if it is necessary to pay 6% on the assessable value as excise duty via reverse CENVAT credit. The response confirmed that the inquirer's understanding is correct, stating that the 6% payment is required when clearing goods under the specified notification, assuming all conditions of the notification are met.