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2017 (5) TMI 604 - AT - Central ExciseTransfer of Cenvat credit from one registered unit to another - units merged and credit accounts of two units also merged, where credit balance of one unit before merger was utilised for payment of duty on all finished products - Revenue entertained the view that the cenvat credit in the account of Excel Fibre Division at the time of merger would lapse and the same could not be utilized for payment of duty by the merged entity - Held that: - there is no doubt that the common registration granted by the department covers the premises encompassing both SFD or EFD. The Cenvat Credit Rules contemplate maintenance of a Common Cenvat account for the factory as a whole. When the factory covers both SFD as well as EFD, there can be no objection to maintenance of a common Cenvat account and making payment of Excise Duty for any final product manufactured in the factory. Once the two divisions have a common registration certificate as a single factory, the Cenvat credit accounts, which were maintained separately will need to be merged. After such an event there can be no objection to the SFD making use of the accumulated credit under EFD prior to issue of common Registration certificate - appeal allowed - decided in favor of appellant.
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