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2017 (12) TMI 955 - HC - Central ExciseTransfer of unutilized CENVAT credit - interpretation of statute - transfer of factory - whether Sub-Rule 1 of Rule 8 requires transfer of the entire factory to another site or it is applicable even to a transfer of a part of the activity undertaken in the factory? - Held that: - the letter dated 18th May 2002 makes it very clear that only a part of the activity of manufacture of final product of grey and processed fabric has been transferred to the unit at Dhamni. Thus, only a part of manufacturing activity has been transferred from Dadar unit to Dhamni unit and the yarn manufactured at Damni is again brought back to Dadar for the purposes of manufacturing of grey and processed fabrics. On plain reading of Sub-Rule 1 of Rule 8, it is apparent that it contemplates shifting the entire factory of the assessee. Rule 8(1) will not apply if only a part of the manufacturing activity is shifted to another site. In the present case, out of three units at Dadar which were used for manufacture of final product of grey and processed fabric, only one unit has been shifted and not entire factory - SubRule 1 of Rule 8 of the CENVAT Rules will not apply to the facts of the case. SubRule 6 of Rule 57F talks of shifting of the plant or factory to another site - this rule also not applicable in the present case. Appeal dismissed - decided against appellant.
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