Central excise on branch transfer

[Asked by Guest]

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

Cenvat credit reversal on branch transfers: excise payable on removals; credit usable only if recipient is a manufacturer.
Removals of parts from the factory for transfer to another state attract excise: manufactured parts must be cleared on payment of excise, bought-out inputs removed as such require proportionate Cenvat credit reversal, and imported parts require reversal of customs-related credit. If the receiving location is a manufacturing unit, reversed credit or duty paid may be taken as credit there; if not, credit utilisation is restricted.