Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (8) TMI 877 - AT - Central ExciseTransfer of unutilized Cenvat credit - Demerger of companies - Held that:- If the factory is transferred on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the factory with the specific provision for transfer of liabilities of such factory, then, the transferor will be allowed to transfer the Cenvat credit lying unutilized to the transferee company. - In the present case the factory has been transferred to appellant and if the factory is transferred on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the factory with the specific provision for transfer of liabilities of such factory, then, the transferor will be allowed to transfer the Cenvat credit lying unutilized to the transferee company. there is a change in ownership and the appellant has taken over the liabilities of the transferor. From a plain reading of the provisions of the Cenvat Credit Rules, it is absolutely clear that the appellant is rightly entitled for the transfer of Cenvat credit as held by both the adjudicating and appellate authorities. - Tribunal held that the transferor can transfer the credit lying unutilized in its books of accounts to the transferee company on account of change in ownership of the factory. Therefore, we do not find any infirmity in the order passed by the lower authorities. - Decided against Revenue.
|