20 September 2012
A Company has 2 units, both in a same city, same locality, same nature of work. Both the units are registered under excise. All the sales and purchases made in the name of unit I. Unit II is acting as job worker.
At the time of audit, for the machineries situated at unit 2, department disallowed the CENVAT credit taken by unit-I.
please suggest if there is any provision under excise so that unit II can transfer credit of that CENVAT to unit-I.
20 September 2012
No, you can not transfer credit of one unit to another. Transfer of Credit is permissible only under Rule 10 of CENVAT Credit Rule,2004. This allows transfer of credit only in case of closure, takover,amalgamation etc.
CAclubindia
