Cenvat credit on Capital goods transfer

Dear All,

We have a unit in Uttranchal which enjoys excise exemption under notification 49/03 dated 10.6.2003 where goods can be removed with out excise duty. 

Now we are going to remove an imported machinery which is use from Uttranchal to our unit in Tamil nadu. 

1.  Can we take cenvat credit (atleast proportionally) on the machinery moved to Tamil nadu?

2.  Should we take any permission from Central excise authorities for removing the machinery?

Request your valuable inputs.

Kind Regards

Narasimhan.J

Replies (1)

Dear Mr. Narasimhan,

You will not be able to pass on the credit for mainly two reasons:

1. No credit was taken on the machine when it was received in Uttaranchal unit.

2. Credit eligibility is to be tested at the time of receipt of the goods in the unit.

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