Sale of Ex. goods w/o taken in to godown

[V K]

Dear Sir

we are having Dealer Ex Registration & IEC CODE in Delhi. Now we want to import some Equipment .Material will be coming at Mumbai Port..  we want to make the custom  clearance at Mumbai Port , as our buyer is also in mumbai.

Query is : as we have to pass on the CVD also to our buyer, can we raise the Ex bill w/o taking the material in our delhi godown ? is this is ok with the Excise rules?? Else the custom clearance will be at Mumbai Port & the material will come to delhi by road , we will make the RG23 Entry & after this we will raise the Excise bill & the material will again move to Mumbai ( to our buyer ) on our excise bill.( it will be costly as well as the time taking process )

 

pls guide.............

Regards

VIKAS KAPOOR

[email protected] 

[r.rajkumar kumar]

iif not already or stock in bonded werehouse. you can sell it on highsea sales basis with out paying duty and local tax. Enter an aggreement with the buyer and pass right on the goods to the buyer before customs duty payment and coress the customs area. let the buyer pay the duty and clear the goods

with out local tax. if you are clearing goods y have to pay the duty and the input credit y can pass on to the customer to avail the input credit. but y have to pay local tax. tks

[NEERAJ KUMAR, RANCHI]

Dear Mr Kapoor,

There is one way as suggested by Mr Rajkumar regarding high sea sale. Other wise for passing on cenvat creit you will have  to bring the goods to your registered premises and then remove it on you excise invoice.

[Sanjib Kothari]

Dear Mr Kapoor,

 

The sale itself cannot be carried out as you are not registered with VAT in Maharashtra. Being a dealer in Delhi, you cannot sell any goods in Maharashtra or any other state without charging CST. Now the said consignment is coming to Mumbai Port which means it cannot be Central Sale now. Now, relating to passing off CENVAT Credit for CVD , it cannot be passed on unless and until it is being sold from your godown or registered premises.

 

In nut shell, the only option which you can avail for selling the said product is by way of HIGH SEAS SALE. But, kindly note that once the consignment reaches the destination port, you cannot make High Seas Sale ie; your High Seas Sales Contract prepared in Rs 50.00 Non-Judicial Stamp Paper must be executed much before the arrival date of the consignment. High Seas Sale follows the same rule as CST Transit Sale under E-I.

 

Regards

 

Sanjib Kothari

AI Summary

CENVAT credit transfer limited unless goods sold from registered premises; consider high-seas sale to shift duty liability. CENVAT credit cannot be passed to the buyer unless the goods are sold from the seller's registered premises or after inward RG23 entry; alternatively, a high-seas sale executed before arrival transfers ownership and duty liability to the buyer so the seller may avoid duty payment, but destination customs clearance raises local tax and VAT/CST compliance issues for the party clearing the goods.