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2019 (2) TMI 1102 - AT - Service TaxTransfer of credit - amalgamation - non-compliance with Rule 10 of the Cenvat Credit Rules - information regarding surrender of registration with Chennai and Mumbai not provided - case of Revenue is also that Transfer could not take place before reversing the credit in the accounts of Chennai and Mumbai entities - Held that:- The show cause notice proposed to deny credit on the ground that no prior permission stands taken by the appellant. However, the said issue stands accepted by the Adjudicating Authority and as such it was not open to the Revenue to deny the credit on further allegations - The legal issue that Adjudicating Authority cannot go beyond the show cause notice is well settled by catena of judgments. Otherwise also, the credit was transferred from Chennai and Mumbai after intimating the Service Tax Authorities, under the orders of the Hon’ble High Court and as such cannot be questioned by the Revenue. The scheme of amalgamation has clearly provided that all the assets of the Transferor Companies would be available to the Transferee Company. Inasmuch as the transfer of the unutilized credit has been done under the approval of the Hon’ble High Court as per the scheme sanctioned by the High Courts, the denial of the same is neither justified nor warranted. Appeal allowed - decided in favor of appellant.
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