Unutilised Cenvat Credit

[NANDA H.L.]

We have 100% EOU unit & registred with Central Excise - Customs division. The EOU unit converted to DTA unit. We approached the concerned range & division office (Excise)to migrate our Registration details. Then Division officers recommended to get the new registration. We applied and got the new registration. When we have the EOU unit we have unutilised Cenvat Credit balance of 5 LAKHS & Service Tax credit balance of Rs.1LAKH. What is the procedure and records to be maintain to transfer the credit from EOU to DTA. Plese send the details to folloiwng mail I.D : [email protected]

[Rama Krishana]

Since the unit is same, there should not be any difficulty of utilizing balance of cenvat credit availed under the old registration certificate number. Though rule 10 of the CCR is not specifically address your issue, but the rules nowhere denies the credit in your hand. You must declare the fact before the department. If we take the issue from another side, once you start manufacturing of excisable goods, you can take the cenvat credit of duty paid on inputs / input services. For this purpose, you may also refer to rule 11(2) applicable to SSI units. Therefore, I do not see any difficulty in your case for utilizing cenvat credit under the new registration certificate. But, indeed, what I have stated above, must be read with the activities and terms of migration from EOU to DTA

AI Summary

Cenvat credit transfer from EOU to DTA permitted when the same unit declares migration and resumes excisable manufacturing. Unutilised cenvat and service tax credits of an EOU converted to DTA may be utilised under the new registration for the same unit provided the fact is declared to the excise department and the unit resumes activities entitling cenvat claims; rules do not expressly deny such utilisation and references to provisions applicable to small manufacturers may guide procedural application.