Cenvat on shifting of factory to another site

Discussion in 'Excise' started by bhargav, Sep 10, 2013.

  1. bhargav

    bhargav Member

    CENVAT On Shifting of Factory to Another Site !!! In terms of Rule 10 (1) of Cenvat Credit Rules, 2004 , the manufacturer of final product shall be entitled to transfer of the unutilized CENVAT credit to the tranferred factory provided he shifts his factory at another site and also fulfills the requirement of Rule 10(3) of CENVAT credit Rules. 2004. In this context, the word 'another site' used in Rule 10 (1) of CENVAT credit Rules means the site other than the factory which is being shifted and not a completely new site where there was no production unit in existence prior to this shifting. Rule 10 (3) of the CENVAT Credit Rules provides that the transfer of CENVAT credit under Rule 10 (1) shall be allowed if the stock of inputs as such or in process, or the capital goods is also tranferred along with the factory. Thus, if there is no inputs in the stock, there is no occasion for tranferring the inputs to the new factory. Admittedly, the assessee can tranfer only the capital goods to another site and the condition of Rule 10(3) of CENVAT credit Rules for tranfer of CENVAT credit is fufilled. Transfer of CENVAT credit to another factory site is thus allowed and is proper. Fabrico India Pvt Ltd Vs CCE (2012-TIOL-1446-CESTAT-DEL)

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