cenvat on capital goods

This query is : Resolved

RAM SAINI (Querist)
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29 April 2011 Hello

we have two plant A & B our A plant have all the manufacturing and commercial activities

our plant B is only for the job work(only for plant no. A)

there is no billing and no any other activity from the plant no B other than this job work

we have purchased machinery for Plant no.A but it was installed in plant no. B
at the time of installation there was no any documents was raised from plant no. A to B,machinery was send to plant no.B with the original documents and the cenvat credit was also taken in plnat no. B (also registered with central excise)
Hence there was no use of cenvat in plant no B it was still laying in the book it was neither used nor transfered to anywere

we are regularly showing it in the plant no.B excise return

now we have transfered the machines to plant no. A with the cenvat of the book which was laying in the excise book of the plant no. B

now excise authorites are asking for the interest for the period machinery was laying in Plant no. B (Because the oringinal documents was in the name of plant no. A

pls advise are we liable to interest

if no. pls advise any case reference

T.K. JAGANATHAN

T.K. JAGANATHAN (Expert)
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30 April 2011 If an endorsement was made by Plant A stating that it has not availed the cenvat and it is transfered to Plant B, then the availement of Cenvat Credit by Plant B is justified. Please check whether any endorsement was made on the reverse of the invoice (cenvat copy)

RAM SAINI

RAM SAINI (Querist)
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02 May 2011 yes there was endorsement by director

(The same packed machine sent to the unit-B
and installed at unit B)

singned and stamped by director

Thanks & rgds

RK Saini

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