RAW MATERIAL MOVEMENT

[SURYAKANT MITHBAVKAR]

Our Unit is registered under f central Excise Act,1944. we are running one new unit where we have doing only labour Job activity. we have not doing any clearance from that unit. we hvar not registered the same unit under Central Excise Act.but we have subimiited letter to our Excise Division regarding the activity. we have following points top require suggestion. (In this case our registered unit order Raw materials) 1. Can we take Raw Materials (Non-Excisable) delivery directly to that unregistered unit from Vendors indicating delivery address on vendors Invoice. 2. Can we take Raw Material (Excisable) delivery directly to that unregistered unit from vendors indicating delivery address on vendors (Transporter copy) Invoice.

[Surender Gupta]

From the facts it appears that the new unit has been set up for processing or storage of goods. In such circumstances, I see no problem or difficulty in doing so as long as non excisable goods are concerned. But, if new unit have been set up for storage of excisable goods to used as input at registered unit lator on, you must be careful, since it is not allowed otherwise than job working activity. 

AI Summary

Excisable goods movement to an unregistered unit is restricted absent authorized job work arrangements and registration. Non-excisable raw materials may be delivered directly to an unregistered unit with the vendor noting the delivery address, but delivery or storage of excisable goods at an unregistered unit for later use as inputs at a registered unit is restricted and permissible only under authorized job work arrangements or equivalent compliance mechanisms.