about transfer of credit

[MEHUL ASHAR]

Respected Sir,

                          can a unit transfer the excisable imported raw material to its own unit having the same PAN & can that other unit can take the credit of cenvat + 4% additional duty.

[YAGAY andSUN]

Yes, you can transfer the imported raw materail to your other unit. You would have to issue an Invoice in this regard and would have to charge appropriate duty (equivalent CENVAT credit + SAD @ 4%).

[MEHUL ASHAR]

Respected Sir,

                        Thanking you for answering my queeries as I am totally satisfied with the replies you have sent to me.

AI Summary

Transfer of imported raw material permits intra unit charging of duty enabling recipient to claim CENVAT credit. A unit may transfer imported excisable raw material to another unit with the same PAN by issuing an invoice and charging duty equivalent to the CENVAT credit plus an additional duty; the recipient unit may take credit of the charged CENVAT and additional duty subject to normal credit rules.