Cenvat credit
This query is : Resolved
09 January 2012
sir,
a manufacturing company have two units.
all the clearances of excise are made by 1st unit. but major part of manufacturing is done in 2nd unit. company shows all the material purchase in 1st unit and take credit of raw material. but CENVAT credit of plant and machinery of 2nd unit is shown in the ARE-1 of of 2nd unit itself. as whole clearance is from 1st unit, company wants to transfer the credit of plant and machinery also to 1st unit. What procedure have to be followed? kindly advice
a manufacturing company have two units.
all the clearances of excise are made by 1st unit. but major part of manufacturing is done in 2nd unit. company shows all the material purchase in 1st unit and take credit of raw material. but CENVAT credit of plant and machinery of 2nd unit is shown in the ARE-1 of of 2nd unit itself. as whole clearance is from 1st unit, company wants to transfer the credit of plant and machinery also to 1st unit. What procedure have to be followed? kindly advice
09 January 2012
Just prepare the details of cenvat credit to be passed, intimate to jurisdictional ac/dc with a copy marked to your range officer supporting with the reason on the basis of which you are planning to transfer the cenvat credit whether it is merger of units, amalgamation, change of name etc.
10 January 2012
but there is no such case of amalgamation, merger or change of name. there are two units because both are at different places and so for the purposes of central excise both are independently registered.
10 January 2012
but there is no such case of amalgamation, merger or change of name. there are two units because both are at different places and so for the purposes of central excise both are independently registered.
10 January 2012
If the case is not related to merger, then another option is also available. If both the units are registered under central excise then you can just raise the excise invoice of capital items from 2nd unit to 1st unit on reversal of cenvat credit. The 1st unit can take the benefit of this cenvat credit.No need to intimate any excise authority.
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