Bill to Shift to in Import

[RAJENDRA KHOMNE]

Sir,

Good morning

We want to procure a machinery through import on bill to ship to basis, purchase order will be issued accordingly, The seller would issue bill in our company name and the machinery would be shipped to other company. I want to know that in such type of transaction can company to whom machinery would be shipped take excise credit on the base of custom bill of entry. Pl explain with cenvat credit rule.

Thanks

Khomne R. M.

AI Summary

Eligibility of Excise Credit for Machinery Imports on 'Bill to Ship to' Basis Under Rule 9(1) Explained A query was raised about the eligibility of excise credit when importing machinery on a 'bill to ship to' basis, where the bill is issued to one company but the machinery is shipped to another. An expert responded, stating that the recipient company, if it is a manufacturer using the machinery for producing excisable goods, can claim Cenvat Credit under Rule 9(1) of the Cenvat Credit Rules, 2004. It was advised to endorse the bill of entry to the recipient company to prevent double credit claims and potential litigation. Another participant emphasized that the document should be in the manufacturer's name for availing credit.