Central excise on branch transfer

[sankar s]

We are having manufacturing plant at Gujarat where we manufacture textile machine. Certain parts of machines are manufactured, some are procured and some are imported. We would like to keep some spare parts at Tamilnadu to serve the customer of south region. If we are making branch transfer what is the impact of central excise on these parts which are manufactured in the plant, procured from local vendor and imported from out of India. If we have taken cenvat credit on local purchased how it is to be dealt.

AI Summary

Company to Reverse Cenvat Credit on Bought-Out and Imported Parts; Excise Duty on Manufactured Parts Applies A company with a manufacturing plant in Gujarat is considering transferring spare parts to Tamil Nadu to serve southern customers. The discussion revolves around the impact of central excise on these parts, which are either manufactured, locally procured, or imported. It is clarified that stock-transfer concepts do not apply, and Cenvat Credit must be reversed for bought-out and imported items. Excise duty is payable on parts manufactured in the factory. If transferred parts are sold to manufacturers, Cenvat Credit can be passed on. However, if the receiving unit is not a manufacturing concern, credit utilization is limited.