Cenvat credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 February 2013 A company having two different units (as part of the entity)at different locations within the same city and engaged in manufacturing two different final products of different chapter heads.

Of the two, one unit is having accumulated Cenvat Credit. The other unit is paying excise thro' PLA since there is shortfall in Cenvat Credit.

Is it possible to use the accumulated Cenvat Credit of one unit by the other unit as both are coming under one single entity. If yes, please guide on the procedure involved with reference to Excise Act/Rules/Circulars/Notifications if any.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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21 February 2013 If a manufacturer of the final products shifts his factory to another site or the factory is transferred on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the factory to a joint venture with the specific provision for transfer of liabilities of such factory, then, the manufacturer shall be allowed to transfer the CENVAT credit lying unutilized in his accounts to such transferred, sold, merged, leased or amalgamated factory under rule 10 of cenvat credit rules 2004.

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