Rule 12A – Procedures and facilities for the Large tax payer :
(1) Removal of inputs/capital goods as such by LTU without reversal of CENVAT credit [Sub-rule 1]: A large taxpayer may remove inputs (except motor spirit, commonly known as petrol, high speed diesel and light diesel oil) or capital goods, as such, on which CENVAT credit has been taken without payment of an amount specified in rule 3(5) of the CENVAT Credit Rules, 2004 under the cover of a transfer challan or invoice from any of his registered premises (sender premises) to his other registered premises (recipient premises) other than a premises of a first or second stage dealer for further use in the manufacture or production of final products in the recipient premises.
Conditions for removal: Such removal shall be subject to the conditions that-
(a) the final products are manufactured or produced using the said inputs and cleared on payment of appropriate duties of excise leviable thereon within a period of 6 months, from the date of receipt of the inputs in the recipient premises; or
(b) the final products are manufactured or produced using the said inputs and exported out of India, under bond or letter of undertaking within a period of 6 months, from the date of receipt of the inputs in the recipient premises,
and that any other conditions prescribed by the Commissioner of Central Excise, Large Taxpayer Unit in this regard are satisfied.
The transfer challan or invoice shall be serially numbered and shall contain the registration number, name, address of the large taxpayer, description, classification, time and date of removal, mode of transport and vehicle registration number, quantity of the goods and registration number and name of the consignee.
Consequences of non-compliance with the specified conditions for removal: If the final products manufactured or produced using the said inputs are not cleared on payment of appropriate duties of excise leviable thereon or are not exported out of India within the said period of 6 months from the date of receipt of the input goods in the recipient premises, or such inputs are cleared as such from the recipient premises, an amount equal to the credit taken in respect of such inputs by the sender premises shall be paid by the recipient premises with interest in the manner and rate specified under rule 14 of these rules.
Sub-rule (2) lays down that the first recipient premises may however take CENVAT credit of such amount paid by it as if it was a duty paid by the sender premises who removed such goods on the basis of a document showing payment of such duties.
Also, if such capital goods are used exclusively in the manufacture of exempted goods, or such capital goods are cleared as such from the recipient premises, an amount equal to the credit taken in respect of such capital goods by the sender premises shall be paid by the recipient premises with interest in the manner and rate specified under rule 14 of these rules.
If a large taxpayer fails to pay any of such amount, it shall be recovered along with interest in the manner as provided under rule 14 of these rules.
Exceptions: The afore-mentioned provisions are not applicable:
(a) if the recipient premises avail area based exemptions from excise duty under specified notifications [Units located in North Eastern States, Jammu and Kashmir, Sikkim and Kutch district are entitled to area based exemptions from excise duty]
(b) in respect of an EOU or a unit located in a EHTP or STP.
(2) CENVAT credit taken by sender premises not to be denied [Sub-rule (3)]: CENVAT credit of the specified duties taken by a sender premises shall not be denied or varied in respect of any inputs or capital goods, removed as such under sub-rule (1) on the ground that the said inputs or the capital goods have been
(i) removed without payment of an amount specified in rule 3(5) of these rules; or
(ii) used in the manufacture of any intermediate goods removed without payment of duty under sub-rule (1) of rule 12BB of Central Excise Rules, 2002.
For the purpose of this sub-rule intermediate goods shall have the same meaning assigned to it in sub-rule (1) of rule 12BB of the Central Excise Rules, 2002.
(3) Transfer of CENVAT credit by LTU [Sub-rule 4]: A large taxpayer may transfer CENVAT credit taken by one of his registered manufacturing premises or premises providing taxable service to its other registered premises by,-
(i) making an entry for such transfer in the records maintained under rule 9;
(ii) issuing a transfer challan containing registration number, name and address of the registered premises transferring the credit as well as receiving such credit, the amount of credit transferred and the particulars of such entry as mentioned in clause (i), and such recipient premises can take CENVAT credit on the basis of such transfer challan as mentioned in clause (ii):
It may be noted that such transfer or utilisation of CENVAT credit shall be subject to the limitations prescribed under rule 3(7)(b).
Thus, a large tax payer unit will not be able to transfer the credit taken by any of its registered manufacturing premises or premises providing taxable service to his other registered premises.
(4) Transfer of credit not allowed in specific cases: Transfer of credit (as discussed in point (3) above) is not allowed if the registered manufacturing premises avails area based exemptions from excise duty under specified notifications in North Eastern States, Jammu and Kashmir, Sikkim or Kutch district.
(5) Return by LTU: A large taxpayer shall submit a monthly return, as prescribed under these rules, for each of the registered premises [Sub-rule 5].