Excise on Within State Finished Goods Transfer

[Asked by Guest]

Hi,

Please explain me in understanding the treatment, if I have two excisable units in Maharashtra viz Mumbai & Pune. Suppose I have to transfer the finised goods manufactured in Mumbai to Pune, from where the invoicing will be done with other finished items manufactured in Pune Itself. As fas as Vat is concerned, no vat is payable also no F Form requires as it is intra state tranfer. Kindly guide me on two removal from Mumbai & Pune.

AI Summary

Cenvat credit on intra state transfers allowed; receiving unit may utilize duty credit and valuation follows transaction value rules.
Intra state transfers of finished excisable goods require the originating unit to pay central excise duty, while the receiving unit may claim and utilize cenvat credit on the duty paid. Valuation of such related unit clearances follows the transaction value principle and the statutory valuation hierarchy: cost based valuation certified by a cost accountant for consumption in production, and market/comparable price valuation where goods are cleared for sale.