TMI Blog2008 (7) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... mber (T) Shri M.M. Singh, DR, for the Appellant. Shri Balbir Singh, Advocate, for the Respondent. [Order per : M. Veeraiyan, Member (T)(for the Bench)]. - This is an appeal by the Department against the order of the Commissioner Nos. 80-81/CE/2003, dated 23-7-03. Heard both sides. 2. Relevant facts, in brief, are as follows: (a) M/s. Nahar Industrial Enterprises Ltd., Vill. Jalalpur, P.O. Dappar, Distt. Paitala (hereinafter called as M/s. NIEL) are engaged in the manufacture of grey fabrics/woven processed fabrics of cotton, synthetic filament yarn and man-made staple fibre falling within Chapters 52, 54 55 of the Schedule to the Central Excise Tariff Act, 1985. (b) Prior to 23rd November, 2001, an independent textile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,03,546/- representing the deemed credit availed/utilised in respect of processed fabric from unprocessed fabrics (not owned by the same mills). 3. Commissioner after holding that the amalgamation took effect only from 20-11-01 when the certified copy of the amalgamation approved by the Hon'ble High Court was filed with the Registrar of Companies and after following the precedent decision in the case of Technocraft Industries (I) Ltd. v. CCE, Mumbai-III reported in 2000 (120) E.L.T. 106 (Tri) dropped the proceedings. 4. Learned DR took us through the grounds of appeal and submitted that the proposal for amalgamation was with effect from 1-4-2001 which was duly approved by the Hon'ble High Court and therefore, the operative date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hough the Transfer date was 1-4-93, it became effective only on 8-3-94. This is apparent on the second above referred extracts from the High Court's order. The cessation of corporate entity of the Transferor Company would occur not on the Transfer date but on the effective date. Consequently, therefore, the eligibility to the benefit of the notification would, survive up to the effective date. On this ground we find case for the appellants and allow the appeal with consequential benefits". 7.2 In addition, we find that no extra benefit was sought to be derived by the respondents by claiming the effective date as 8-11-01/20-11-01. In fact, if the claim of the Department was accepted, then it was submitted that they are eligible for credi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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