Excise in E-1 Transaction

[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.

[Guest]

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.