Our company has its units spread all over the country. Some of the units are claiming area based exemption. Therefore they are not allowed to take Cenvat Credit on Capital goods as per the exemption notification. In a case certain equipments were brought to one such exempted unit (not having Central Excise Registration) for installation of a Captive Power Plant (CPP). But as per the State laws Thermal Power plant are not allowed to be installed due to environmental issues. As a Result the CPP equipments have to be shifted to another area which is not exempt. What should be the procedure in this case so that the Cenvat Credit on the above could be claimed? The unit transferring has not availed the credit, the equipments are to be transferred without being used. The invoices for the equipments are in the name of exempted unit, hence this unit cannot issue Cenvat invoice.
This is very urgent, can anyone help with case laws, sections and Rules?
CAclubindia
