We are registered under Central Excise Act and manufacturing Pharma machinery.
We have avail cenvat credit on electric motor and same motor we will sent to our vendor who is also manufacturing machinery but not registered under Excise Act.
In this process our vendor will assemble the motor with their machine and the same machine sold to us thereafter we will sell the same machine to our customer with our serial number.
While sending motor which nature of process to be declared in Challon 4(5)(a). Also this process is valid under Excise Act.
Clarification Sought on Excise Act Compliance for Assembling Electric Motors Under Rule 4(5)(a) and Cenvat Credit Rules. A company involved in manufacturing pharmaceutical machinery, registered under the Central Excise Act, inquires about the process of sending electric motors to a vendor for assembly. The vendor, not registered under the Excise Act, will assemble the motor into a machine, which the company will then sell. The question focuses on the proper declaration process in Challan 4(5)(a) and the validity under the Excise Act. Responses vary, with some agreeing that 'assembling' qualifies as manufacturing under the Act, while others disagree. The process involves using specific forms and rules under the Cenvat Credit Rules, 2004. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
