Dear Experts,
We have one unit at Hyderabad and another one is at Rajasthan. From Hyderabad we use to do regular sales on payment central excise duty and using cenvat credit, from Rajasthan we have exempted product sales under Nil rate of central excise duty, but we receiving credit since it is mega power plant supplies.
We accumulating cenvat credit in Rajasthan Unit, but we are unable to set off since all products and sales are exempted, in this circumstances, can we transfer cenvat credit from Rajastan Plant to Hyderabad Plant, is there any option ? Kindly suggest...
Company Seeks to Transfer Cenvat Credit; Rule 12A(4) Limits Transfer to Units Manufacturing Taxable Goods Only. A company operating two units, one in Hyderabad and another in Rajasthan, seeks advice on transferring accumulated Cenvat credit from the Rajasthan unit, which deals with exempted products, to the Hyderabad unit, where sales are subject to central excise duty. Experts advise that Cenvat credit can only be transferred along with the inputs, not independently. Additionally, Rule 12A(4) of the Cenvat Credit Rules specifies that credit can be transferred between units only if the receiving unit manufactures taxable goods, highlighting the importance of the term 'taxable' in this context. (AI Summary)
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