If it is possible to clear goods without payment of duty upto 150 lacs by actual factory and on payment of goods of Loan licencee using the same premises through cenvat and pla simulteniously.
' Loan licencee paying duty and availing cenvat credit while actul factory availing 08/2003 CE simulteniously'
Plz reply soon
Loan Licensees Can Manufacture Under Another's Premises, Pay Duty, and Avail CENVAT Credit Per Notification 08/2003 A query was raised regarding the possibility of clearing goods without duty payment up to 150 lakhs by a factory while simultaneously allowing a loan licensee to pay duty and avail CENVAT credit. The response clarified that loan licensees, governed by the Drugs and Cosmetics Act, can use another's factory premises to manufacture goods under their control, and are recognized as manufacturers under the Central Excises and Salt Act. Both the loan licensee and the primary manufacturer are acknowledged under the Act, with a clearance limit of 150 lakhs as per notification 08/2003 Central Excise. (AI Summary)
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