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

CENVAT credit eligibility may not be denied solely for shared PAN; entitlement depends on input usage and duty payment. Central issue concerns CENVAT credit eligibility where a manufacturer with one PAN obtained a separate Central Excise registration for a sister unit after turnover crossed the threshold; denial of credit solely because registrations share the same PAN is questionable. Eligibility hinges on whether inputs meet the statutory definition of input credit and whether excise duty is paid; clubbing of turnover for registration thresholds does not automatically bar credit where duty is paid. Querying the jurisdictional range office for a formal provision-based view is recommended.