Transfer of Cenvat Cr.

[Ram Niwas]

Dear All

My question is that, we are the manufacturer of bearing parts and we have two unit A & B,

We purchase raw material in unit B and unit B send the material in unit A for Job working and unit a worked on raw material and send back to unit B.  Unit B working on the material and sale the goods in domestic and export market.  There is no billing from Unit A for sale all sale bill raised by unit B.

Now  we required a machine in unit A and we import this and pay CVD. We take credit in our books in unit A. is there any process to transfer the cenvat Cr. to unit B. AS I explain there is no billing from Unit A.

Pleas advise

Regards

Ramniwas

AI Summary

Manufacturer Seeks CENVAT Credit Transfer Between Units; Large Taxpayer Unit Registration Suggested for Compliance A manufacturer of bearing parts operates two units, A and B. Unit B purchases raw materials and sends them to Unit A for job work, which are then returned to Unit B for further processing and sales. Unit A requires a new machine, and the manufacturer seeks to transfer CENVAT credit from Unit A to Unit B, despite no billing from Unit A. A respondent suggests registering under the Large Taxpayer Unit (LTU) to facilitate the transfer. Another response indicates no other provisions exist for such a transfer, except for transferring the Special Additional Duty (SAD) amount quarterly, as introduced in the 2012 budget.