Reversal of CENVAT credit on transfer of capital goods

Akhil Gupta (Manager F&A) (856 Points)

08 December 2009  

Dear All,

             I have some confusion about reversal of CENVAT CREDIT on Transfer of capital goods. Whether we have to reverse whole cevat credit on transfer/sale  of capital goods even after we have used the machinary for 7-8years . If not please provide the suggations. The transfer of capital goods is within the same group located in different places and the unit from which transfering will be done has no sufficient cenvat credit to reverse and didnot want to pay through cash/bank. Please suggest.