EXCISE DUTY ON INTERMEDIATE GOODS

[SURYAKANT MITHBAVKAR]

We have Manufacturing the same products amongest the three different unit situated in different place in one organisation and all unit are registered under Excise. Can we transfer semi finished goods or raw material to other unit to manufacturing the same product without paying excise duty if yes what procedure we have to adopt.

AI Summary

Excise Duty on Semi-Finished Goods: Duty Exemption When Final Products Are Taxable, Not Exempt; Job Work Rules Apply A discussion on excise duty for transferring semi-finished goods between units within the same organization is presented. The issue is whether excise duty applies when transferring intermediate goods between different manufacturing units. It is clarified that if intermediate goods are used to produce a final product subject to duty, no excise duty is payable. However, if the final product is duty-exempt, excise duty is required. Permission from the jurisdictional authority is necessary when transferring goods for job work, and maintaining a Job Work Register is advised. The discussion also questions duty applicability when the final product is exempt but exported under specific authorizations.