CLOSING UNIT PROCEDURE

[SURYAKANT MITHBAVKAR]

We have different unit register under Central Excise , If we require to close on of the unit while surrendering registration to that jurisdiction.

Before surrendering Registration we cleared all finished goods to our customer .

In regards Raw Material in stock on that particular date we transfer excisable goods after charging excise duty to our other unit and also reverse Capital Goods Credit by way of transfer to our other unit after charging cenvat credit availed.

Now our confusion is that non excisable goods stock lying on that closing day can we  transfer the same materials while preparing trading invoice to our other unit .

[RadheyShyam Mangal]

The procedure adopted by you is not suggestable. Rather you should simply have transfered the stock of raw material, capital goods m finished goods etc without payment of duty alongwith unutilized cenvat credit to another unit  under Rule 10 of CCR,2004. 

AI Summary

Transfer of stock without payment of duty recommended when closing a unit, preserving unutilized cenvat credit under procedural rule. When closing a registered unit, stocks of raw materials, capital goods and finished goods should be transferred to another unit without payment of duty and along with unutilized cenvat credit under Rule 10 of the Central Excise Rules, 2004, rather than by charging excise duty and reversing capital goods credit.