branch transfer

[Asked by Guest]

Kindly clarify my understanding is correct for branch transfer from manufacturing plant to trading location in another state

1. In case of manufactured parts transferred to our location in other state : Excise is to be charged and if parts are sold to customer (manufacturer) then same Cevat can be passed on to customer

2. In case of local bought out parts transferred to our location in other state: The cenvat credit taken is to be reversed. Excise is to be charged and same can be passed on to customer when sold.or cost+ 10% with excise

3. In case of imported parts transferred to our location in other state: CVD & AED credit taken is to be reversed. Excise to be charged and same can be passed on to customer when sold or cost+ 10% with excise

AI Summary

Excise on branch transfers requires manufacturer to charge duty and reverse Cenvat credits when transferring bought or imported parts interstate.
Branch transfers from a manufacturing unit to an affiliated trading location in another state require charging excise duty as on a manufacturer's clearance; manufactured parts' duty-incidence permits passing CENVAT credit when subsequently sold, but bought-out local parts and imported inputs require reversal of any CENVAT/CVD/AED credits on transfer. Valuation follows contemporaneous branch sales under the valuation rules, and invoices should record input removal with references to purchase or import documents showing duty paid.