QUESTION

(A) had transferred its business to a company (B) w.e.f. 01.04.2022. As per previous orders booked by (A) , the imported consignment of inputs was received in the factory in the capacity of “import of goods at concessional rate of duty for manufacture of goods” . The material was received in the factory on 10.04.2022. A is still holding its GST Registration, but simultaneously (B) had also included this premises as additional place of business. Now the whole process of manufacture of goods is being carried out only by (B). Now the question is how (B) would make export performance using such material in the name of erstwhile firm. What should be done under the circumstances so that the goods procured at concessional rate of duty may be utilized by (B) in the export goods.

ANSWER

FACTS OF THE CASE:

A transferred its business with all assets and liabilities to B as going concern. B receives consignment in the capacity of “import of goods at concessional rate of duty for manufacture of goods” previously ordered by A.

INTERPRETATION:

Since A is merged with B as going concern, then all the functionalities after the transfer will be continued by B. Therefore for the purpose of fulfilling Export performance against the consignment imported by A at concessional rate of duty, B is required to attach all the documents relating to transfer of business as a proof/declaration of merging to establish that A is merged with B.

CONCLUSION:

B is required to attach all the documents relating to transfer of business as a proof/declaration of merging to establish that A is merged with B so that B can utilize the goods procured at concessional rate of duty by A.  (Reply dt. 26/04/2022)