Transfer of Excess Cenvat Credit

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..... Transfer of Excess Cenvat Credit
Query (Issue) Started By: - Sandeep Aggarwal Dated:- 17-8-2011 Last Reply Date:- 18-8-2011 Central Excise
Got 5 Replies
Central Excise
Continue with the previous issue, our manufaturing unit has been engaged in assembling which amounts to manufacture. The cenvat credit available on inputs is equivalent to 14%.( including additional duty). Further the e .....

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..... xcise duty payabe on finished product is 10%. The difference of 4% resulted into excess balance of Cenvat Credit which is lying unutilised in our books as we have trasferred our entire stock / finished goods and proportionate cenvat credit has been transferred to our second manufaturing unit We therefor want to utilise this excess balance of cenvat credit in our second unit. The maufacturing oper .....

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..... ations has already been terminated from Sep, 10. Kindly advise me whther we can utilise this balance cenvar credit in our second unit. Reply By pradeep khatri: The Reply: Dear Sir, The issue raised by you is related to inflated duty structure. You can't transfer it to other unit except in one condition that if you are registered as LTU. Hope this will clarify your query. Best Regards, Prade .....

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..... ep Khatri Reply By Sandeep Aggarwal: The Reply: Thanks Mr. Pradeep Kindly elaborate your point. Is there any way to utilise or get refund because otherwise it will be a revenue loss to assessee. Reply By kothapally Raji Reddy: The Reply: Sir, Please see Rule 10 of Cenvat Credit Rules,2004 and find out for youself whether your case falls within that Rule. Reply By pradeep khatri: The Reply: .....

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..... Solution suggested by Mr. kothapally Raji Reddy will surely help you out. But the basic question of inflated duty structure will surely irritate you as the Department may raise queries in this regard. Reply By Sandeep Aggarwal: The Reply: Thanks for your suggestion!! I have read Rule 10 in detail but my situation is different. Further I have discussed that part in detail in my earlier querry. .....

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..... Please provide your input while keeping into consideration my previous post. Once again I am thankful to ALL..
Discussion Forum - Knowledge Sharing .....

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