REFUND OF CENVAT CREDIT

[Ramesh M]

Dear Exports,

We have two units in different locations and different ECC numbers, due to technical issues we are surrendering/closing one unit, Issue is there is unutilized cenvat credit available, can we transfer cenvat credit to other unit ? Please advice !!

[KASTURI SETHI]

Transfer of credit allowed under Rule 10 of Cenvat Credit Rules, 2004. Refund is also allowed. Case law based on the decision of the Apex Court is 2016 (6) TMI 314 - CESTAT CHENNAI in the case of Leo Oils & Lubricants Versus Commissioner of Central Excise, Chennai

AI Summary

Transfer of cenvat credit: unutilized credit may be moved to a continuing unit or claimed as a refund under the rules.
Inter unit transfer of unutilized Cenvat credit from a surrendered or closed unit to another unit under the Cenvat credit framework is permissible, subject to the procedural and documentation requirements of the Cenvat Credit Rules; alternatively, the closing unit may claim a refund of the unutilized credit where transfer is not effected.