Using the unutilized cenvat of one unit for the payment of other unit

[Rajkumar Chandnani]

We have two units registerd under Excise with XM001 & XM002. We have large unutilised Cenvat credit balance in one unit(XM001). Can we use this to pay excise of other unit(XM002)?

AI Summary

Cenvat Credit Cannot Be Cross-Utilized Between Different Units, But Input Transfer With Reversed Credit Is Possible A query was raised regarding the possibility of using unutilized Cenvat credit from one excise-registered unit (XM001) to pay the excise duty of another unit (XM002). Two responses were provided. The first response indicated that there is no direct provision for such cross-utilization, but suggested transferring inputs or materials between units with reversed Cenvat credit, allowing the receiving unit to avail of the credit if the materials qualify as eligible inputs or capital goods. The second response confirmed that Cenvat credit is unit-specific and cannot be used across different units.