Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 97 - AT - Central ExciseCENVAT credit - transfer of CENVAT credit - Rule 10 - eligibility or otherwise of the assessee to avail cenvat credit of ₹ 1,44,10,817/- relating to their Vasai unit which was again taken in their books of accounts after transfer of their unit to Guntur - Held that: - Rule 10 of the Rules facilitates transfer of cenvat credit available on record in situations when a factory is shifted or transferred on account of change in ownership, sale, merger etc. The procedural requirements tied to such transfer are very simple indeed. Obviously, the intention of the legislature is to ensure that when such a situation arises, as they often do in the course of trade and commerce, the transition, at least from the CE point of view, should be as simple and seamless as possible and not weighted down with onerous procedural requirements. Where there is only a mere shifting of factory involved, the proceduralities are even more simple. In our view, assessee cannot be faulted for not having intimated the jurisdictional CE authorities, initially those in charge of the erstwhile factory and subsequently to the Guntur CE authorities. As seen above, Vasai CE authorities have even confirmed the availability of ₹ 1,44,10,817/- lying as balance in the cenvat credit account of the erstwhile factory. This being so, and without any allegation that stock of inputs, goods in process / finished products or capital goods have not been transferred from Vasai to Guntur factory, but otherwise diverted or sold clandestinely, it would be puerile to cast any allegation on the assessee that they are not entitled to enter the same account of credit in their registers / books of account of their Guntur factory. The assessee has substantially complied with the procedural requirements of Rule 10 of CCR 2004 and substantive benefit extended vide that rule, namely, facilitating transfer of cenvat credit/PLA from their erstwhile Vasai factory to their new Guntur factory, cannot be then denied - appeal allowed - decided in favor of assessee.
|