Cenvat credit on stock transfered to non excisable unit

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amoll alchetti

account exct

28 Points Posted on 06 May 2014

We have total three unit out of theses only one unit under excise registration and two are non excisable unit but we tranfer stock to non excisable unit from excisable unit with duty paying my queistion is can we avail cenvat credit on goods tranfered to non excisable unit.

Example A is Exise registered unit, B and C Unit are non excisable unit. A is transferring stock to B & C under excise invoice with payment of duty. In this transaction Can A unit Avail cenvat credit Which tranfered to C & D?

Replies (5)

JMS

DY.MANAGER -COMMERCIAL

120 Points Posted on 07 May 2014

Absolutely A can avail Cenvat Credit without any restrictions. A can avail Cenvat credit on any inputs for further process and the Cenvat can be utilized for payment of excise duty on finished goods clearance by A irrespective of the receiving units are registered with Excise or not.

Regards,

JMS

amoll alchetti

account exct

28 Points Posted on 23 September 2014

Sorry sir my question is wrongly understood by you I give deeply example as below A stock transfered goods to B with paying 10300 excise duty for month and paid in cash in next month. Can A avail 10300 as cenvat credit in subsequent month

Mallikarjuna Gupta

Service

38 Points Posted on 24 September 2014

When A transfers stock to B, it has to be treated as normal sale and excise duty has to be charged and paid either from the credit or PLA. If your question is on claiming the credit on tax paid by A, it is not possible to take credit.

It is same as selling goods to an un registered dealer and he cannot take credit on such sales.