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2019 (10) TMI 579 - AT - Central ExciseTransfer of CENVAT Credit lying un-utilized in their Account of Manakapur unit - shifting of Unit from Manakapur falling under Belgaum Division to Hubballi Division - requirement of prior permission under Rule 10 of CCR, 2004 - HELD THAT:- As per Rule 16 of the Chewing Tobacco Rules, it is provided that CENVAT credit can be availed and utilized by the manufacturer and there is no mention of a unit in the said Rules as against the specific mention of unit in CCR - Further, the scheme contemplated under Chewing Tobacco Rules is self-contained and there is no bar under the said Rules to transfer the credit from one unit of the manufacturer to the other unit. Further, though, the permission was granted by the ACCE after examination of the entire records and the documents under Rule 10 of CCR but in fact, the said permission under Rule 10 is not required and the appellant is entitled to transfer the said credit from one unit to another unit under intimation to the Department. In view of the COMMISSIONER OF CUSTOMS VERSUS M/S HEWLETT PACKARD INDIA SALES LTD [2011 (8) TMI 666 - KARNATAKA HIGH COURT], wherein it has been held by the Tribunal that prior permission under Rule 10 is not required for transferring the credit - Moreover, in the present case, the permission was validly given by the ACCE, Hubballi after examination of the entire records vide their letter dated 27.01.2016 and thereafter, the appellant has taken the credit to their Hubbali unit and utilized the same for payment of Central Excise duty for the same month. Therefore, by subsequent letter dated 03.02.2016, the Department cannot withdraw the permission granted earlier. If, at all, the Department wants to withdraw the permission, it cannot be done with retrospective effect in view of the decision relied upon by the appellant. Appeal allowed - decided in favor of appellant.
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