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Credit available in RG23-II

Sachin Adsul (HOD Excise dept) (178 Points)

23 July 2009

Dear Experts,

I have excess credit in my RG-23-II, so can we have any problem in future for that or can i transfer this to my another 2 plant which is in maharashtra & another one is in Baroda?

pls explain.

Thanks & regards

Sachin Adsul

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7 Replies

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 23 July 2009

Dear Mr Sachin

It seems You can transfer the excess credit in RG 23 A Part II .But while Transferrring the credit You should also transfer the stocks and the concerned input Documents to other plant

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sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 23 July 2009

sorry mr sachin

We cannot transfer the excess credit but there exists some provisions for LTU which i am not aware

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 23 July 2009

U have to read rule 10 of cenvat credit rules 2004 which says transfer is possible only on account of change in ownership else it cannot be done

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 27 July 2009

Credit can be transferred along with inputs only. Unused excess credit cannot be transferred.

HARISH SHETTY (IPCC STUDENT) (41 Points)
Replied 01 August 2009

credit cannot transferred to another plant because we cannot transferring stock .

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sunil (excise incharge) (56 Points)
Replied 07 August 2009

Whether Additional Customs duty availed in full or not. ? ((i.e) 50% in the current year and the balance in the next year. )

Kindly explain

Rgds

Sunil

Ajay Raghatate (Sr Executive (Excise & Accounts)) (736 Points)
Replied 14 August 2009

You can not transfer balance of Cenvat Credit, If you have to transfer the credit, then you can Sale/ transfer, Inputs to another unit, and avail the Cenvat credit at input receivable plant.