transfer of finished goods on de-merger.

[PRANAB PANDA]

Dear Experts

Our unit is an integrated Stainless Steel Plant and the existing Coke Oven i.e. Coke manufacturing facility will be transferred to new unit formed as per the scheme of de-merger.

Presently we are maintaining Daily Stock Register for all the products i.e. Stainless Steel products and also the Coke which is manufactured in Coke Oven Plant.

After de-merger, the Coke Oven facility will be transferred to separate legal entity and we will take separate Excise Registration for that entity.

In this context my specific query is the modality of transferring the closing stock of Coke finished goods / coal tar from the Daily Stock Register of our unit to newly formed entity.

[KASTURI SETHI]

Before transferring/shifting all types of stock intimate the jurisdictional Range Officer. Get dated signature of Inspector of Range. In the letter give all the details regarding de-merger etc. Stock is to be transferred on regular invoice book maintained by you at present. Write the words, "Stock transfer" to ---------name of new unit. Give reference of letter written to Range. Since you are to remove excisable goods, the same are to be removed on routine invoice under Rule 11 of CE Rules. All documents regarding shifting must be kept as records in both units.

[PRANAB PANDA]

Thanks for the valued advice and my specific query is that can the newly formed unit be able to avail cenvat credit on the basis of stock transfer as per invoice issued under rule 11 of Central Excise Rule,2002.

Thanks

Pranab Kumar Panda

[KASTURI SETHI]

Yes, undoubtedly. You will have to quantify and intimate the jurisdictional Assistant Commissioner, in charge of Division Office as well as Range Officer. You are to work out the exact amount of cenvat credit you are entitled to. And certify the same and the department may check the exact admissible amount.

AI Summary

Stainless Steel Plant De-merger: Transfer Stock and Avail Cenvat Credit with Section 11B Compliance An integrated stainless steel plant is undergoing a de-merger, transferring its coke oven facility to a newly formed entity, requiring separate excise registration. The query concerns transferring the closing stock of coke and coal tar to the new entity. An expert advises notifying the jurisdictional Range Officer before transferring stock, using regular invoices marked 'Stock transfer,' and maintaining detailed records. The query also asks if the new unit can avail cenvat credit based on the stock transfer invoices. The expert confirms this, advising to quantify and notify the jurisdictional Assistant Commissioner and Range Officer, certifying the cenvat credit amount.