Transfer of Cenvat Credit on Cloing of One manufacturing Unit

[Sandeep Aggarwal]

I have a query relating to transfer of cenvat  credit lying unutilised in one of our manufacturing unit which has been closed for more than a year.

I want to transfer the unutilised credit to one of our other manufacturing unit. 

Please guide us if you have any opinion in this regard.

1. Further would it matter if the Cenvat Credit pertains to both of Capital Goods and Inputs.

2. As we have transferred all the closing stock to our other unit but respective capital goods have not yet been transferred. Can we transfer the corresponding Credit without transferring the capital goods to our other unit?

3. Do the Excise Department has any role in transferring the cenvat credit?

 

Please advise us in this matter.

regards

Sandeep Aggarwal

Email: [email protected]

(M) 9958385278

AI Summary

Transferring Unutilized Cenvat Credit: Rule 10 Allows with Conditions on Factory Shift or Ownership Change A user inquired about transferring unutilized Cenvat credit from a closed manufacturing unit to another unit. Responses highlighted Rule 10 of the Cenvat Credit Rules 2004, which allows credit transfer when a factory shifts or changes ownership, provided inputs and capital goods are also transferred. Some contributors noted that prior permission from authorities is necessary, while others suggested issuing excise invoices for transferred inputs. It was emphasized that without transferring capital goods, utilizing Cenvat credit might not be feasible. The consensus was that the specific situation described does not fit neatly within existing rules, requiring careful compliance and documentation.