Excise in E-1 Transaction

[Asked by Guest]

Respected All,

Point 1 :- If am in Gujarat and I made the purchase from Rajasthan and consignee at UP. I made the E-1Transction.

Pls. advise for Excise duty, whether I should take the Credit or consignee direct take the credit.

Point 2:- if am in Gujarat and I made the purchase from Rajasthan and material come to my plant at Silvassa and then we transfer the material to UP, I am manufacturer.

Pls. advise for Excise duty, whether should I tack the input credit and charge the output Excise OR I simply pass the same Excise duty to UP.

Thank you

[Himansu Sekhar]

What is E-1 transaction? Please clarify

Point-1- If consignee at UP and the invoice is made accordingly , the credit can be taken by the consignee

point-2- For taking credit, the goods should reach in your premises and the details as mentioned in the Rule 9 of CCR 04 and Rule 11 of CEX Rules, should be available in the invoice

The credit will be reversed if the raw materials are cleared as such.

OK

Thank you so much for such detail explanation

AI Summary

Input tax credit entitlement arises for the consignee when invoiced; manufacturers need physical receipt and documentary compliance to claim credit.
When an invoice names the consignee in the receiving State, the consignee may take the input credit. A manufacturer may claim input credit only after goods physically reach its premises and required invoice and documentary particulars are available; credit must be reversed if raw materials are cleared as such.