Cenvat credit taken from another unit

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This query is : Resolved

Rinku Sharma (Querist)

09 February 2013 Sir,

We K.L.Concast Pvt. Ltd have two manufacturing unit, One at Ghaziabad and IInd at Thiryvallur in Tamil Nadu. We want to transfer Cenvat balance from One unit to another unit, How can we do plz suggest me.

Thanks

CA Jitender Kanswal

CA Jitender Kanswal (Expert)

09 February 2013 The credit can be transferred to the second unit to the extent of the raw material and capital goods transferred, alone. Here, you need to refer to Rule 10 [Sub-rule 1 and 3] of the CENVAT Credit Rules which states that: [(1) 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.] Further, Rule (3) states [(3) The transfer of the CENVAT credit under sub-rules (1) and (2) shall be allowed only if the stock of inputs as such or in process, or the capital goods is also transferred along with the factory or business premises to the new site or duly accounted for to the satisfaction of the Deputy Commissioner of Central Excise or, as the case may be, the Assistant Commissioner of Central Excise.]

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