Using the unutilized cenvat of one unit for the payment of other unit

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..... Using the unutilized cenvat of one unit for the payment of other unit
Query (Issue) Started By: - Rajkumar Chandnani Dated:- 28-8-2009 Last Reply Date:- 12-10-2009 Central Excise
Got 2 Replies< .....

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..... br>Central Excise
We have two units registerd under Excise with XM001 & XM002. We have large unutilised Cenvat credit balance in one unit(XM001). Can we use this to pay excise of other unit(XM002)? .....

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..... Reply By Surender Gupta: The Reply: As such there is no provision for utilizing of cenvat credit of one unit by the another unit. However, you can move inputs / material from one unit to another aft .....

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..... er reversing the cenvat credit. On that basis, after receiving the material so despatched from one unit, second unit can avail and utilize the cenvat credit. Indeed, the material must be eligible inpu .....

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..... t or capital good for the another unit. Reply By R.S. Mangal: The Reply: no, the cenvat credit is available unitwise and cross utilaisation of excess credit of one unit for payment duty of another uni .....

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..... t of same person is not possible.
Discussion Forum - Knowledge Sharing .....

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