Change in Properitor ship

[Rahul Sonawane]

Dear Sirs,

We are a properitor registered under Central Excise , if we wish to change in the properitor ship, please guide us on following

1) Whether we need to surrender the existing C.E registration and apply for new C.E registration.

2) or what procedure we need to followed.

Thankimg you in anticipation.

 

[R MUTHURAJ]

Dear Mr.Rahul,

The Central Excise registration is based on the PAN based ECC number. In case, the entire business is being transferred, you have to surrender the existing  RC which is in the name of the old owner and the new owner/proprietor must apply for a new registration with the CE Department.

Regards,

R.Muthuraj

Mob:099944 54039

 

[Rahul Sonawane]

Dear Sir,

Thanks for the guidance, what about unutilised Cenvat Credit ?/

[R MUTHURAJ]

Hi,

What about the Raw materials, WIP, FG & Capital Goods lying the factory. Whether the same also being transferred. If yes, then we have to refer Rule 10 of CCR, which is reproduced as under:

Rule 10.  Transfer of CENVAT credit. - (1) If a manufacturer of the final products shifts his factory to another site or the factory is transferred on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the factory to a joint venture with the specific provision for transfer of liabilities of such factory, then, the manufacturer shall be allowed to transfer the CENVAT credit lying unutilized in his accounts to such transferred, sold, merged, leased or amalgamated factory.

(2) If a provider of output service shifts or transfers his business on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the business to a joint venture with the specific provision for transfer of liabilities of such business, then, the provider of output service shall be allowed to transfer the CENVAT credit lying unutilized in his accounts to such transferred, sold, merged, leased or amalgamated business.

(3) The transfer of the CENVAT credit under sub-rules (1) and (2) shall be allowed only if the stock of inputs as such or in process, or the capital goods is also transferred along with the factory or business premises to the new site or ownership and the inputs, or capital goods, on which credit has been availed of are duly accounted for to the satisfaction of the Deputy Commissioner of Central Excise or, as the case may be, the Assistant Commissioner of Central Excise.

Applying the above, the unused cenvat credit can also be transferred with your ownership.

Otherwise it shall stand lapse.

Trust this clarifies.

Regards,

R.muthuraj

[YAGAY andSUN]

Surrender of Existing C.E. Registration Certificate is must.  Further, you can also apply for new R.C.

Rule 10 of Cenvat Credit is relevant in this regard.

AI Summary

Cenvat credit transfer requires transfer of inputs and capital goods and proper accounting to retain unutilised credit. Change of proprietorship requires surrender of the existing Central Excise registration and application by the new proprietor for fresh registration. Transfer of unutilised CENVAT credit is permitted only if inputs, work-in-process, finished goods or capital goods are transferred with the business and the items on which credit was taken are duly accounted for to the satisfaction of the Deputy/Assistant Commissioner; otherwise the credit lapses.