excise Transfer Exempted To Excise

[Asked by Guest]

Dear sir,

2 Item Mfg Goods Biomass Gasifier and Coal Gasifier

1 item Exempted (Biomass Gasifier)

2 Item Excises Goods ( Coal Gasifier)

Biomass Gasifier Complete MFG Goods and Coal Gasifier Not Complete

Can Use the Material for Biomass Gasifier To Coal Gasifier

Sir Possible Internal stock transfer of the Exmeted (W/H To W/H Excise)

Please

[Rajagopalan Ranganathan]

Dear Shri. Prajapati,

You cannot avail credit of duty paid on inputs, capital goods and service tax paid on input service utilized for manufacture of Biomass Gasifier. Even if the Coal Gasifier is not complete if it has essential characters of Coal Gasifier then duty is payable on the same. Input meant for Biomass Gasifier is capable of being used for manufacture of Coal Gasifier then you can transfer the input to input account meant for Coal Gasifier and can avail the creit of duty paid on such input.

thnx sir,

dear sir please send the job work register .

[Mahir S]

Sir,

Refer Board Circular No. 265/99/96-CX dated 12.09.96 for the Annexure - IV register format.

The register is also readily available in stationery shops dealing in taxation matters.

 

AI Summary

Excise credit transfer allowed when inputs for exempt goods are moved to dutiable product retaining essential characteristics.
Inputs used in manufacture of an exempt biomass gasifier do not qualify for excise credit when used for the exempt product; however, if those inputs are capable of being used for manufacture of a dutiable coal gasifier they may be transferred to the input account for the coal gasifier and the duty paid on such inputs can be availed as credit. An internal transfer mechanism between input accounts/stock should be used and appropriate job work/register records maintained.