Central Excise Registration

[Raja krishnan]

One body corporate paper manufacturing unit located in one district having Excise RC & running business from 2010 and now they applied new Excise RC by same PAN number for their sister unit located in other district because of crossed 1.50 crore. what is the conditions to be followed by this unit. Department advise this unit because of same PAN you will not avail CENVAT..this is true. please reply...

[Ganeshan Kalyani]

Is there any specific reason given by the department for opining inelgibility of credit.

In my view the input credit used in the new factory is eligible as far as is satisfies the input credit definition .

[DR.MARIAPPAN GOVINDARAJAN]

In my view the contentions of the department is correct. Any view on this from experts please.

[Ganeshan Kalyani]

Central Excise registration is PAN based, So the reason of having same PAN for two registration and denying the credit on this reason is not understood to me.

[YAGAY andSUN]

Ask you jurisdictional Range Office to revert with the relevant provisions as even if provisions of clubbing of sales of SSI unit is crept in, then, in this scenario CENVAT credit cannot be denied, if ultimately C.E.Duty is being paid.

AI Summary

Corporate Paper Unit Faces CENVAT Credit Issue Over New Excise RC With Same PAN; Clarification Sought on Eligibility A corporate paper manufacturing unit with an existing Central Excise Registration Certificate (RC) applied for a new Excise RC for a sister unit in a different district using the same PAN, due to exceeding a turnover of 1.50 crore. The department advised that using the same PAN would disqualify them from availing CENVAT credit. One respondent questioned the department's reasoning, suggesting input credit should be eligible if it meets the definition. Another agreed with the department, while a third respondent was unclear on the denial of credit due to the same PAN. It was suggested to consult the jurisdictional Range Office for clarification on relevant provisions.