refund on accumulated ITC on export of medicine

[BalKrishan Rakheja]

A manufacutrer (Ltd Company) having one unit in Panchkula and another in Baddi (HP) (same name and same PAN) and engaged both are in manufacturing of medicine. Unit situated at Panchkula purchased the medicine from their Badi unit on payment of IGST and exported the same from the Panchkula premises in the same packing on same day after availing the ITC on these finished goods. The party export these goods (medicine) under LUT and now filed refund for accumulated ITC. on perusal of time of clearance invoices it also found that the difference of time of issuance of invoice from Badias well as from Panchkula is only 8-15 Minutes . Now my question is:

1. WHETHER PANCHKULA UNIT CAN TAKE ITC OF FINISHED GOODS I.E. MEDICINE AND EXPORT UNDER LUT ON THE SAME DAY AND CLAIM REFUND FOR ACCUMULATED ITC FOR THE SAME MONTH.

2. IN THE CASE OF MEDICINE THERE MUST BE NAME OF MANUFACURER AND BATACH NO ETC ON THE EACH MEDICINE ITSELF AND THERE MUST BE REQUIREMENT FOR LICENCE FROM DRUG DEPARTMENT FOR MANUFACTURING OF MEDICINE. iN THIS CASE WHETHER IT IS CORRECT THAT ANOTHER UNIT CAN EXPORT THE SAME.

3. IMPACT OF TIMING OF DESPATACH OF GOODS FROM BADDI UNIT AND PANCHKULA UNIT. HOWEVER IT IS NOT POSSIBLE TO REACH THE GOODS FROM BADDI TO PANCHKULA IN 8-15 MINUTS AS THERE IS DIFFERENCE OF TIMING OF 8-15 MINUTES TO REACH FROM BADDI TO PANCHKULA.

AI Summary

Manufacturer's Quick Exports Raise ITC Claim Validity Concerns; Lack of Vehicle Numbers on Invoices Under Scrutiny. A manufacturer with units in Panchkula and Baddi is exporting medicine and claiming a refund for accumulated Input Tax Credit (ITC) under the Goods and Services Tax (GST) framework. The Panchkula unit purchases medicine from the Baddi unit, pays IGST, and exports the goods on the same day, raising questions about the legitimacy of claiming ITC and the feasibility of goods transfer within 8-15 minutes. The discussion highlights concerns about procedural compliance, such as the absence of vehicle numbers on invoices and the possibility of goods being sent directly to the port, which may invalidate the ITC claim.