can we go for transfer or refund of unutilised Cenvat Credit?

[chaganti srinivas]

Dear Sirs,

Pls. provide your valuable information regarding below queries.

Sir, we have 3 MFG Units in AP (A,B&C) unit A is Big unit unit C is small unit now we are closing small unit C we transfer the all finished and semi finished and all inputs to our unit A with payment of Excise duty, but  some unutilised Cenvat credit closing balance is ther at unit C, now query is,

1.  can we transfer the unutilised Cenvat credit balance amount from unit 'C' to unit  'A'?

2.shall we apply for refund of unutilised Cenvat credit  closing balance of unit 'C'?

pls. do needful in the above mater.    BENARJEE  GOVADA

[Ramaiah Swamy]

good evening, mr. srinivas,

 

1.  Cenvat Cedit Rules, 2004 provide for transfer of credit on account of shifting of factory

2.  Since you are closing the "C" unit, you can move the materials, ( raw materials, wip, finished goods and capital goods) to Unit "A" against  invoice on payment of duty

3.  Thereafter make necessary entries in DSA and other related documents maintained at Unit "C"

4.  At the completion of shifting of Unit "C" , you can approach your jurisdictilonal  ACCE/DCCE and seek transfer ofunutilized / balance  cenvat credit

5.  After getting the permission, you can take credit at Unit "A"

6.  As an abundant precaution, you may write in advance to ACCE/DCCE in charge of Unit "C" about your proposal to shift Unit "C" to Unit"A".  Endorse copy of this letter to the ACCE of Unit "A" as well.

7.  This should suffice

8.  You may also approach your range office for any other divergent practice followed

 

Thanks,

 

Rangaswamy

 

AI Summary

Cenvat credit transfer: unutilised balances may be moved on factory shifting after invoice, record entries and authority permission. Transfer of unutilised Cenvat credit is permitted when a unit is closed and its inputs, semi finished goods, finished goods and capital goods are shifted on invoice with payment of duty; make requisite DSA and record entries, apply to the jurisdictional supervisory officer for transfer of the balance credit, and, upon permission, the receiving unit may avail the credit.