Central Excise transactions

[Shiva S]

Dear Experts,

 

We have excise registration for 2 mfg and 1 warehousing of our unit at 3 different place within same range...we produce at both the places...we buy under 1 registration and invoice in the same registration. we receive our RM at our warehouse and from there we transfer the RM to our Mfg units...right now, as the places are nearby we dont make any documents for transferring the RM or FG from one place to another...

 

can anyone tell the best possible wayof doing the transaction without having the excise complication  availing cenvat credit and service tax on Rent of all the places 

 

Thanks in advance... 

[Mahir S]

1)  If 2 Excise registration are taken for two different manufacturing units, then RM and FG can be cleared from one place to another only on Central Excise Invoice. 

2)  If no documents are presently made for transferring the RM and FG, then how stocks are maintained at both the units.

I am of the veiw that the procedure presently followed is not proper.

[Shiva S]

agreed with you, but my query is not addressed...

[kumarswamy kulkarni]

Dear Sir,

You can make transaction delaring your units interalia under Rule 4(1A) of the Central Excise Rule, 2002.

For this, you have to get permission from concerned Asst Commissioner and you have to intimate the same

transaction to concerned Asst Commissioner.

No Doubt, we can carry on the transaction and you may claim cenvat credit for inputs.

AI Summary

Inter unit transfers require Central Excise Invoice or Rule 4(1A) declaration with commissioner permission to claim Cenvat.
Inter unit transfers between separately excise registered manufacturing premises must be effected on a Central Excise Invoice and supported by stock records. Alternatively, units can be declared linked under Rule 4(1A) by obtaining permission from and intimating the Assistant Commissioner; thereafter transfers may be carried out under that framework and Cenvat credit claimed subject to conditions.