Refund / Adjustment of surplus cenvat credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 December 2010 Dear Experts,

Ours is a Pvt Ltd Company, running two different diversified mfg. units having seperate excise registration.

Out of the two units, one unit is doing about 90-95% job work u/r 4(5)a without any excise/service tax liability.Hence we have accumulated Cenvat Credit (Mainly Capital Goods).

My query is :-

1 Whether, we can ask for the cash refund for such accumulated Cenvat Credit ?

2 Whether we can get permission for adjustment / utilisation of said accumulated cenvat credit while discharging
our Excise Duty Liability for another unit ?
Your expert opinion will be highly appreciated.

Regards

Rajesh Kumar

Rajesh Kumar (Expert)
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22 December 2010 No refund is possible. Transfer of credit from one unit to other is possible only in cases of Large Taxpayers (LTU units).
You can examine the possibility of restructuring the activity between the units to avoid such accumulation of credit.