Cenvat Set off against Centralised Registration

[Manoj Sharma]

Dear Sir,

We have two locations and obtained centralised certificate, my query is :

Can We Utilized Cenvat credit of one unit for the payment of other unit ?

Regards

Manoj

[YAGAY and SUN]

Yes, you can.  Even if, in case of ISD you may distribut the CENVAT credit.  Further, if you registered under LTU, even then you may utilised CENVAT credit of one unit to pay the duty liability or service tax of the other unit.

AI Summary

Cenvat credit can be utilised across units under centralised registration, including distribution through ISD and LTU.
A centralised registration permits utilisation of CENVAT credit of one unit to pay the duty liability or service tax of another unit. Credits may be distributed via an Input Service Distributor or utilised under Large Taxpayer Unit/centralised registration to discharge liabilities across locations.