EXPORT MATERIAL SEND

[SNEHAL SHAH]

Sir,

We are manufacturing unit & lying at differnt state . Total 7 to 8 plant at different location but problem is that at one unit we have accumulated 8 crore cenvat credit , so either go for refund we can go through rebat claim after export at this unit and all unit send his material to this unit for job work but problem is that this unit can not manufacture small qty for this export .

So please suggest that can we export A plant materil at B lant location please suggest procedure ?

Please reply urgently .

Sachin Shah

[Ramaiah Swamy]

dear mr. sachin shah,

 

1. I understand, you have accumulated cenvat credit and you want to wipe off the same.

2.  This can be done by exporting the finished goods on payment of duty under rebate route

3.  This is applicable for each of your units.

4.  Transfer of credit from one unit to another unit is possible only for Large Tax payer Units ( LTUs) only and not to other manufacturer-assessees

5.  There is no other procedure to reduce the cenvat credit balance, to my knowledge.

 

With best wishes.

 

 

Ramaiah swamy

 

0 9845665300

 

[palaniappan thirukalathiappan]

If your material is meant for export only and unable to utilise cenvat credit, you can apply for refund as per ccr-5

AI Summary

Manufacturing company explores options to utilize accumulated CENVAT credit; considers export under rebate or refund for unused credit. A manufacturing company with multiple plants across different states faces an issue with accumulated CENVAT credit at one unit. They seek advice on whether they can export materials from one plant to another to utilize this credit. One response suggests exporting finished goods on payment of duty under the rebate route, noting that credit transfer between units is only possible for Large Taxpayer Units. Another response advises applying for a refund if the material is solely for export and the credit cannot be utilized.