tranfer of 4% credit

[sv bhasker]

Dear experts

As you are aware that Rule 10A is inserted in Cenvat Credit Rule, 2004  from 1.4.2012 that enables transfer of 4% CVD to the other unit of the same assessee. Can the credit lying in balance of unit as on 31.3.2012 be transfered to other unit.

AI Summary

Dispute Over Transfer of 4% CVD Credit Between Units Under Rule 10A of Cenvat Credit Rule, 2004 A query was raised regarding the transfer of 4% CVD credit between units of the same assessee under Rule 10A of the Cenvat Credit Rule, 2004, effective from April 1, 2012. One expert opined that credits accumulated before this date could not be transferred due to the lack of departmental clarification. Another expert suggested that the amended rule allows for the transfer of credit, provided other conditions are met, and there is no restriction on the amount that can be transferred as of June 30, 2012.