Query : Company "X" had supplied free of cost materials to Company - TopicsExpress

Query : Company "X" had supplied free of cost materials to Company "Y" after clearing goods ex factory on payment of excise duty but inadvertently not recovered excise duty from "Y". After 5 years from project completion , "X " is asking "Y" to pay excise duty and take cenvat credit on project related capital goods / input service etc . Is it required for "Y " to pay it ? whether X can demand te amount of duty after 5 years . Ans : In this case it was Xs duty to pay the excise. Deartment is not concerned whether X has recovered the amount or not . Y is not liable to pay the duty so belatedly . Also CENVAT can also be not taken in such manner.

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