Transfer of excise duty necessary on Stock Transfer?

[Guest]

Transferor unit: Tamil nadu Transferee Unit: Jammu (Covered by exemption notification) Raw materials procured vide import and excise and customs duty on it paid. Goods transfer of such raw materials can be done without transferring the excise duty portion? is it possible to retain the excise duty portion in such transfer so that credit can be claimed in Tamil Nadu?

[Mukesh Kumar]

The answer is No in absolute term.

AI Summary

Excise duty retention on stock transfers is not permitted, preventing transferor units from retaining duty for credit elsewhere. Retention of the excise duty portion by a transferor on an inter unit stock transfer of raw materials is not permissible; the transfer cannot exclude the excise duty element to preserve credit in the transferor's location.