Stock Transfer from One Unit to another unit for export ED

[george thomas]

Dear All

We have one manufacturing unit at Karnataka and another at Tamilnadu .We want send Palm Fatty Acid Distillate ( PFAD) from Karnataka Factory to Chennai factory for export from Chennai Factory.

Kindly clarify Karanataka stock transfer clearance to Chennai Factory, Can we get Excise Duty Exemption and if so what is the procedure?

[Mahir S]

You can follow the CT -1 Procedure in this matter.

[DR.MARIAPPAN GOVINDARAJAN]

Mahir Sir,

I have one doubt CT-1 is the procedure for procurement of specified goods without payment of duty from EOU. This case is transfer of goods for export. Whether CT-1 procedure is applicable. Whether the PFAD is a specified good? I request for your further advise.

[Mahir S]

Sir,

Apart from above, i do not have any other view for such stock transfer clearance for subsequent export.

Maybe some other readers may offer any suggestions on the issue.

Thanks for your support.

[JSW CEMENTLIMITED]

Sir

You have to follow the provisions of Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable and Other Goods) Rules, 2016. You need not issue any CT1 in this case.

Regards,

V.Venkat Raman

AI Summary

Excise duty exemption for inter unit stock transfers for export requires concessional removal rules rather than CT 1 procedure. Inter unit transfer of PFAD for export should not be processed via CT 1; CT 1 applies to specified procurement without duty for certain undertakings. Transfers destined for export ought to follow the concessional removal regime under central excise rules permitting removal at concessional rate, with the corresponding compliance and documentation, and therefore issuance of CT 1 is not required for such export bound stock transfers.