Transfer of excise duty necessary on Stock Transfer?
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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?
Excise Duty Transfer Not Allowed in Stock Transfers Between Units; No Credit Claim Possible for Tamil Nadu Unit. A query was raised about the transfer of excise duty during the stock transfer of raw materials from a unit in Tamil Nadu to a unit in Jammu, which is covered by an exemption notification. The question was whether it is possible to transfer the raw materials without transferring the excise duty portion, allowing the Tamil Nadu unit to claim credit. The response clarified that it is not possible to retain the excise duty portion in such transfers, indicating a straightforward 'No' to the possibility of claiming credit in Tamil Nadu. (AI Summary)