Transfer/sale FTP

[Arun Aggarwal]

Sir

I have two units as principal manufacturer in Delhi and in Mumbai to manufacture jewellery

As per the notification no 40/2015-20 dt 23/02/2017 and as ammended on 2/03/2017 by corrigendum

'such inputs procured duty free are used in the manufacture of dutiable goods in the factory/unit, where exported Gems and Jewellery products were manufactured. Sale/transfer of such duty free Precious metal inputs shall not be allowed.”

If i Purchase precious metal in Delhi from a nominated agencies after export as replenishment from Delhi and sent to my Mumbai unit for manufacturing and returned back to Delhi for export after some more manufacturing, will it be considered as transfer which is not allowed or it will be considered as only shifting as per the notification? as no sale has taken place. Further I can not be a job worker of myself.

pls advice

Arun

[Kishan Barai]

Sale/transfer of such duty free Precious metal inputs shall not be allowed.

AI Summary

Prohibition on transfer of duty free precious metal inputs: sale or transfer of such inputs is not permitted under the notification. A principal manufacturer queried whether moving duty free precious metal inputs between two of its manufacturing units as replenishment and returning them for export is a permissible internal 'shifting' or a prohibited sale/transfer under the notification. The recorded reply states that sale/transfer of such duty free precious metal inputs shall not be allowed, reiterating the notification's prohibition without further qualification on intra unit movements or self job work arrangements.