Invoicing under rule 11 of C.E. Rules,2002.

Sanjay Sharma (Querist) 17 June 2008 This query is : Resolved
Can we transfer the 'Cenvatable inputs 'to the other part of the same unit. We are manufacturing Tractors and also operating the 'Spares Parts Division'in the same premises. Spares Parts division has been added in the Central Excise Registration Certificate after the 1st june-06.

Tractor is exempted in the excise but the tractor parts is not exempted. so we procure the parts and sell them with our labeling. some times we transfer the Parts to the plant for the tractor manufacturing as it is condition.

My Query is -

1. Can we transfer the inputs to plant on non-excisable invoice without charging the excise duty ?.

2. if we can transfer the inputs, can we debit the excise duty payable on the said inputs in the end of the month by the notional calculation i.e on inputs value 14.42%.?

3. Or should we transfer this inputs to the plant on excisable invoice under rule 11 of C.E. Rules, 2002. Is above
mentioned process violation of this rule.

Pls. clarify.
Regards
Sanjay Sharma

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Guest (Expert) 17 June 2008
Firstly have you opted for centralised registration.

Sanjay Sharma (Querist) 18 June 2008
We have amended the our Excise Registration Certificate after 1st june-06 for adding the Sapare parts division. There is no sepearte registration for spare parts division.

pls.clarify

Rajesh Kumar (Expert) 23 June 2008
The question is not clear as to where credit is being taken. The question of debit of "credit taken" can arise only after credit has been taken somewhere.
If credit has been taken at some point- then,
1. The transfer has to be made under an invoice.
2. Duty amount equal to the credit taken is required to be debited and not 14.42%.

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