Cenvat credit on inter unit sales

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2012 IF 1 UNIT SELL A PRODUCT TO OTHER UNIT WHICH IS USED BY THE OTHER UNIT AS INPUT AND THE PRODUCT IS SOLD BY THE 1ST UNIT CHARGING EXCISE CAN CENVAT BE TAKEN AND IF YES PLS QUOTE THE RELEVANT SECTIONS AND CASE LAWS

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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05 March 2012 If the sending unit pays excise at the time of transfer then the other unit can avail cenvat benefit, provided final product of other unit chargeable to excise and subject to other conditions like invoice ,SSI etc

CA.rajni kalsariya

CA.rajni kalsariya (Expert)
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05 March 2012 yes,2 unit can take cenvat credit of excise charged by 1 unit as per the normal provision of excise law.otherwise company can paid excise only on final product and cenvat credit of 1unit is taken by 2unit.goods transfer by 1 unit to 2 unit is known as capitive consumption show rule 8 of valuation.(valuation of capitive consumption).

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Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2012 Thanx a lot Experts but to support the fact pls quote any section or any judgements if possible