CMA Final · Indirect Tax Laws and Practice · Transition to GST (Transitional Provisions)
Kaveri Auto Ltd. removed excisable goods without payment of duty to another premises for tests before the appointed day. Before the six-month period ends, it wishes to dispose of the goods from that other premises. Which statement is correct under the transitional provisions?
The manufacturer may transfer the goods from the other premises either on payment of tax for supply in India or without payment of tax for export, provided this is done within the specified period. Return to the original place is not the only route.
- AThe goods must first return to the manufacturer's place of business, with no other route allowed
- BThe manufacturer may transfer the goods from the other premises on payment of tax in India or without payment of tax for exports within that periodCorrect
- CThe goods may be sold only if the other premises is registered, and only on payment of tax
- DThe goods may be transferred only for export, and domestic supply is barred
Explanation
The third proviso to section 141(3) lets the manufacturer, under the existing law, transfer the goods from the other premises on payment of tax in India or without payment of tax for exports within the period. Registration of the other premises is not required, because the sub-section covers premises whether registered or not.
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