Dear Sirs,
Our client has two factories manufacturing alloy steel castings. Unit -1 is in Maharashtra and Unit-2 is in Karnataka.
Unit-1 is now closed and some of the capital goods and stocks were transferred to the Unit-2, in mid 2016.
Unit-1 is having substantial cenvat credit as on today, Jan 2017.
Can such credits be transferred to Unit-2 and utilised for clearances from Unit-2??
Rule 10 states that transfer is possible.
Would like to know what is the procedure??
The company has a turnover of 60cr out of which 50% is for exports.
Request the honourable members to shed some light on this issue.
Thanks and Regards,
Vardharajan AV
Client Seeks Advice on Transferring Cenvat Credit Between Units; High Court Supports Refund of Unutilized Credit A client with two factories, one in Maharashtra and the other in Karnataka, seeks advice on transferring Cenvat credit from the closed Maharashtra unit to the operational Karnataka unit. The client queries whether such a transfer is permissible and requests procedural guidance. An expert suggests referring to a previous issue and case laws, indicating that a refund of unutilized Cenvat credit upon factory closure is possible. Two case laws are cited to support this position, emphasizing that refunds are admissible despite contrary decisions by the Revenue, as the High Court order supports the refund. (AI Summary)
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