Cenvat credit on inter unit transfer
This query is : Resolved
06 October 2012
Our company have two units. One unit is located at excise exempt area (EE1) and other unit is excisable unit (ET1).
Excise exempt unit has made a purchase of Raw Materail (Generally used by both units). Due to excessive purchase in excise exempt unit, it was transferred to Excisable unit alondwith its invoice [not a excisable invoice, since it is exempt unit]. However, it was mentioned on the face of the invoice that "Material sent to other unit in Original Packing as received from the Supplier vide suppier invoice no. -----. Alonwith the invoice of the unit, the original excisable invoice of the supplier was also attached.
Please, clarify whether Excisable unit can take cenvat credit in this case. This is very urgent.
Excise exempt unit has made a purchase of Raw Materail (Generally used by both units). Due to excessive purchase in excise exempt unit, it was transferred to Excisable unit alondwith its invoice [not a excisable invoice, since it is exempt unit]. However, it was mentioned on the face of the invoice that "Material sent to other unit in Original Packing as received from the Supplier vide suppier invoice no. -----. Alonwith the invoice of the unit, the original excisable invoice of the supplier was also attached.
Please, clarify whether Excisable unit can take cenvat credit in this case. This is very urgent.
Madhukar N Hiregange
(Expert)
07 October 2012
As long as the facts are true, the credit on material received from another unit can be availed by the receiving unit.
Arun Kumar Singh
(Expert)
22 October 2012
Dear Atul,
Excise registered unit can't take the cenvat credit on behalf of exempted unit endorsement of invoice.
Excise registered unit can't take the cenvat credit on behalf of exempted unit endorsement of invoice.
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