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

Input Tax Credit claims for exported goods upheld despite intra-unit timing discrepancies if supporting export documents substantiate the transaction.
A purchaser unit may claim refund of accumulated Input Tax Credit on finished medicines bought from a sister unit and exported under LUT on the same day if the transaction is genuine and substantiated by export documentation; timing discrepancies in invoice timestamps are often treated as clerical lapses when corroborated by export papers, whereas implausible logistics, missing transport details, or lack of supporting records undermine the claim.