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

Cenvat credit entitlement: recipient manufacturer may claim credit if duty paid and imported machinery used in manufacture.
Cenvat credit on imported machinery billed to one party but shipped to the actual manufacturer is allowable if central excise duty is paid and the capital goods are used in manufacture of dutiable goods; to avoid double credit and audit issues, the bill of entry should be endorsed to, and documentation should be in the name of, the manufacturer availing the credit.