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

Guidance for EOU to DTA Conversion: Transfer of Unutilized Cenvat and Service Tax Credit Permissible An entity operating as a 100% Export Oriented Unit (EOU) converted to a Domestic Tariff Area (DTA) unit and sought guidance on transferring unutilized Cenvat Credit and Service Tax credit to the new registration. The response advised that since the unit remains the same, utilizing the existing Cenvat credit should not pose a problem. Although Rule 10 of the Cenvat Credit Rules does not specifically address this situation, it does not prohibit the credit transfer. It was recommended to declare the situation to the department and consider Rule 11(2) applicable to Small Scale Industries (SSI) units.