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

Cenvat credit transfer: LTU registration enables inter unit credit movement; SAD transfer allowed quarterly as a separate mechanism.
Transfer of Cenvat credit between separate manufacturing units is not automatic; such inter unit credit movement is available where the units hold a common LTU registration. Additionally, a budgetary amendment permits quarterly transfer of the SAD component to another unit, but no other direct provision for transferring the imported machine's Cenvat credit from Unit A to Unit B was indicated.