LOAN LICENSE

[VAISHALI JOHSI]

Dear All,

I need detailed excise procedure for the following business model:

Company XYZ manufacture their product on loan license basis at premises of Company ABC

ABC buys the complete raw material and packaging material for XYZ on their name

XYZ needs to take the finished goods delivery to their Warehouse and cut the Excise gate pass on their name only.

Is stock Transfer procedure in this case is valid

Please advice correct excise procedure

AI Summary

De facto manufacturer status determines whether stock transfer procedures apply for duty suspended loan license removals.
Determination of the de facto manufacturer depends on the parties' agreement: if the arrangement is principal to principal, the job worker is treated as manufacturer and stock transfer procedures for duty suspended removal to the principal's warehouse apply, subject to the procedural conditions set out in excise administrative guidance for gate passes and documentation.