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Treate of cenvat credit on after new company create

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Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2011 At presents we have a Manufactring unit with Captive power plant. We are availing cenvat on Capital goods & Inputs used in manufacturing plant & Power plant. now we will create a new power company for power plant without any physical movement of Capital goods. (power is not a exciable product).
My query is
1. Are we required a seprate excise regritation?
2. should we reverse cenvat credit which is already availed on capital goods/inputs ( including project cenvat )in captive power plant.
3. if yes then how many persentage(%)we reverse cenvat.
4. What will treatment for unutilised credit relevent to power plant( Inputs / capital goods )

PCS

U S Sharma

U S Sharma (Expert)

05 August 2011 new power plant will be seperate identity, and would not qualify for any input credit on input or capital goods,

you have to reverse back whole of input credit.

you need to inform the juridictional DC/AC regarding the new power plant, and get a memorandam that Excise registration is not needed for such plant ( as you are already owing excisable unit)

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