Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2023 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (12) TMI 520 - CESTAT CHENNAIRejection of request of the appellant to transfer unutilized cenvat credit - closure of factory - Rule 10 of CCR 2004 - HELD THAT:- The appellant vide letter dt. 15.12.2011 intimated the department that their Puducherry unit is being closed down and that they intend to transfer the unutilized cenvat credit to Sriperumbudur, Kanchipuram District - The very same issue was considered by the Hon’ble High Court of Madras in the case of THE COMMISSIONER OF CENTRAL EXCISE VERSUS M/S. FEATHERLITE PRODUCTS PVT. LTD. [2017 (6) TMI 814 - MADRAS HIGH COURT]. The assessee in the said case had requested for transfer of assets, stocks as well as cenvat credit from Hosur unit to their unit at Bangalore, after closure of the factory situated at Hosur. The Hon’ble High Court after considering the Rule 10 of CCR 2004 observed Thus, having regard to the purpose behind the rule, which is, broadly, to enable an assessee to use unutilised Cenvat credit, we see no difficulty in holding that an assessee will be able to transfer his unutilised Cenvat credit, even in a situation, where he shifts his factory from one site to another. The decision of Hon’ble High Court of Madras in the case of M/s. Feartherlite Products Pvt. Ltd. was appealed by the Department before the Hon’ble Supreme Court. The appeal was dismissed by the Hon’ble Supreme Court in [2018 (7) TMI 614 - SC ORDER] - The Hon’ble Apex Court observed that there are no grounds to interfere with the order passed by the Hon’ble High Court. The decision of the Hon’ble jurisdictional High Court being affirmed by the Hon’ble Supreme Court, ratio of the judgment is squarely applicable. The rejection of request to transfer unutilized cenvat credit owing to closure of factory, is not justified. The impugned order is set aside - Appeal allowed.
|