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

Transfer of Cenvat Credit requires transfer and accountal of inputs and capital goods plus departmental verification before credit is availed.
Transfer of unutilised Cenvat credit is permitted only when the inputs, inputs in process, or capital goods on which credit was availed are transferred and duly accounted for to the satisfaction of the excise authorities; departmental verification and proper accountal are preconditions to allow the receiving unit to take the credit. Absent transfer of capital goods or where closing stock was moved without appropriate reversal or excisable invoicing by the transferor, credit cannot be straightforwardly transferred and may require reversal and re-invoicing.