cenvat utilization

guna sekar (software consultant) (42 Points)

16 December 2009

we have two plants and two plants have two different registrations,my question is

at the time of monthly utilization output-inputs,can i utilize one plant output to both plants input or same plant input that i have to utilize

gunasekar.r

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4 Replies

Navneet Gupta (Article) (129 Points)
Replied 16 December 2009

in excise, each unit is a separate entity. we cannot utilise the credit of one unit against the duty payable by other unit.

excise dept would not allow it to be used. if u still do it, be prepared for a SCN

Reetika Goel (Qualified Chartered Accountant) (565 Points)
Replied 20 December 2009

The concept of Centralised Registration is not there in Excise Law, therefore, each factory has to be registered separately.

Since, each factory is a separate assesse in the eyes of Excise Law, the input & output of each factory are to be kept separate for each of them.

Manufacturer can't plan to utilize CENVAT of one factory against output duty of other factory.

The CENVAT of one factory shall be available to him for carryforward for prospective output liability of same factory.

The output duty of another factory whose CENVAT fell short, will have to be paid through PLA.

Ashish Ojha (Chartered Accountant) (469 Points)
Replied 21 December 2009

Navneet & Reetika are right...

chandrasekhara swamy (DY.MANAGER) (23 Points)
Replied 23 December 2009

only LTUs can utilise the excess input of one unit in another unit

it is restircted to Blr , kolkata , mumbai, delhi and companies whose tax payments exceeds some limits

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