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Procedure of shifting company in central excise

Amit Prakash Singh (Accountant) (295 Points)

24 October 2011

Dear All experts

What is the procedure before and after of shifting company ( Registered in excise already) in Central Excise.

Thanx & Regards

Amit Singh

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15 Replies

CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 24 October 2011

When you change factory premises, fresh registration is required under Central Exicse. Existing registration need to be surrendered. Tranfer of unutilsed cenvat credit is possible under Rule 10 of CCR subject to satifaction of Asst.commissioner.

CA Nitin Karmalkar (Senior Associate) (70 Points)
Replied 24 October 2011

Dear Amit,

If you are DTA unit following procedure is to be followed,

1. You have to take permission from Department for Such Shifting. First register new premises under excise. Take new reg. no. though you are registered under excise. Same is b"coz Excise registration is for premises & not for person

2. Clear all RM & FG stock from existing factory. All clearance of INPUTS will be removal as such i.e. reverse the cenvat availed on the same. In case in FG you have to pay duties as you are paying at the time of clearance.

3. You can avail credit of all above duties at new premises.

4. Surrender your existing registration.

You can contact me on 9822610852 for further clarification

1 Like

R P Ananthakumar (Sr. Officer - Central Excise/Cash) (514 Points)
Replied 02 November 2011

I agree with Mr. CA Nitin Karmalkar. You can avail the credit all the duties except FG. as per rule you are not able to take cenvat credit for Finished Goods,

Sandip Choudhury (Factory Manager) (65 Points)
Replied 26 February 2012

Dear Sir

If we are not avail any cenvat than what is the procedure for shifting the factory

thanks

Sandip

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 27 February 2012

procedure is same, only change that your credit balance is not shifted, as you are non tax payer. but if the gross clearance + shifting goods cross 150 lacs , then duty may be involved on the sole discretion of R/O having supervision over the factory.

R P Ananthakumar (Sr. Officer - Central Excise/Cash) (514 Points)
Replied 27 February 2012

Procedure is same if you are transfereing the exciable and non-exciable capital goods, raw materials, semifinished goods, finished goods from one premisses to another premisses.

You can getl prior permission from Asst.Dy commisiioner of C,Ex for this transaction. You can transfer non exciseable goods on without payment duty and excisable goods on with payment of duty. You can take credit what you have paid during this transaction (Expect duty paid for finished goods)

wings279 (GM ) (21 Points)
Replied 01 March 2012

Dear Sir,

Please let me know if a unit is under SSI exemption and is moving to a new premise what is the procedure ?

Does the permission to shift needs to be given in a certain format or is there a prescribed form that need to be filled or the request can be given on the company letter head and submitted to the Range office .

Also do you need to apply for new licience and registration ? After the submission of Old registration or does told one get cancelled the moment you request for permission to shift ?

Please let me know

Thanks

Aman

Ram kr. (Buisness) (883 Points)
Replied 02 March 2012

Mr. Nitin point of view is Clear all RM & FG stock from existing factory. All clearance of INPUTS will be removal as such i.e. reverse the cenvat availed on the same. In case in FG you have to pay duties as you are paying at the time of clearance.

1.My question is if cenvat is not enough then what is the option.

2.Can we sale finished goods to inter unit and take cenvat credit.

3. Can we sale input to inter unit and take cenvat credit.

4. Can we register multi unit in one range and division.

Thanks

CA Nitin Karmalkar (Senior Associate) (70 Points)
Replied 10 March 2012

Originally posted by : Ram kr.

Opinion: You are required to pay duties so even if cenvat is not enough pay duties in cash

2.Can we sale finished goods to inter unit and take cenvat credit.

Opinion:- Kindly elaborate

3. Can we sale input to inter unit and take cenvat credit

Opinion:- Yes. You can transfer input to other unit under cover of excise invoice & credit on the same can be availed at other unit.

4. Can we register multi unit in one range and division.

Opinion:- Yes, But it will under provision of Large tax Payer unit (LTU) provisions

Thanks

C KALYANAKUMAR (Sr.MANAGER - COMMERCIAL) (37 Points)
Replied 20 December 2012

Due to take some time for the registeration of new factory, can we take leased warehouse to store the excisable raw materials, finished goods and all other capital goods, till the registration of new factory.

If yes, what will be the formality to shift the materials to the leased warehouse.

ricky1991 (Student Others) (25 Points)
Replied 26 December 2012

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CA Sanjay Bag (CHARTERED ACCOUNTANT) (3340 Points)
Replied 26 December 2012

Originally posted by : CA Unnikrishnan Nair N
	When you change factory premises, fresh registration is required under Central Exicse. Existing registration need to be surrendered. Tranfer of unutilsed cenvat credit is possible under Rule 10 of CCR subject to satifaction of Asst.commissioner.

Agreed....................

Dattatri (M.Com) (22 Points)
Replied 21 November 2014

Fact of the Case:-

1. Location of Factory i) Kanakapura Division, Bangalore III Commissionerate

ii) Kengeri Division, Bangalore - III Commissionerate.

2. We have taken Excise registration for both units separately. Range and Division for both units is different but "commissioner ate" is same.

3. Unit in Kanakapura Division is an existing unit and taken new registration in kengeri Division recently.

4. As we are shifting partly completed jobs from Kanakapura Division to Kengeri Division, how to transfer the goods? Central excise invoice is necessary? duty has to be paid at Kanakapura Division and can take cenvat of the same at Kengeri Division Unit?

Babu Kannan (Accountant) (83 Points)
Replied 17 December 2014

Originally posted by : CA Nitin Karmalkar
	Dear Amit, If you are DTA unit following procedure is to be followed, 1. You have to take permission from Department for Such Shifting. First register new premises under excise. Take new reg. no. though you are registered under excise. Same is b"coz Excise registration is for premises & not for person 2. Clear all RM & FG stock from existing factory. All clearance of INPUTS will be removal as such i.e. reverse the cenvat availed on the same. In case in FG you have to pay duties as you are paying at the time of clearance. 3. You can avail credit of all above duties at new premises. 4. Surrender your existing registration. You can contact me on 9822610852 for further clarification