TMI Blog2013 (6) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... e only condition is that the inputs should have been received and used in the factory of production on or after 1st March, 1997. Hence, we have no hesitation in accepting the case of the assessee that there is no transfer of units as understood in the legal parlance and the 'transfer' itself being after 1999, they are entitled to have the advantage of the proviso to the said Rule. In the circumstances, we agree with the assessee's contention and we have no hesitation in affirming the order of the Tribunal. Even though the Tribunal has not reasoned its order in so many words, yet, it followed the decision of the Delhi Tribunal on a similarly positioned assessee. We agree with the decision of the Tribunal. Consequently, we reject the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed molasses on payment of duty and availed credit for the distillery unit for payment of duty on the dutiable Ethyl Alcohol. It is stated that over a period of time, there was huge accumulation of credit in the distillery unit and the same remained unutilised. Even though the assessee had two registration certificates, one for sugar unit and another for distillery unit, on 30.6.1999, the assessee requested the Revenue for one single registration certificate for both the units. On getting the same, in respect of the unutilised credit in the distillery unit, the assessee sought to use the same on the duty payable on the manufactured sugar. To avail of the same, the assessee sent a letter on 04.10.1999 to the Deputy Commissioner of Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en as per the Board's Or.No.10/2/69 CX 6 dated 12.5.1971. In the circumstances, the assessee asked for amendment of the registration certificate by adding Ethyl Alcohol Denatured in the schedule to the Registration Certificate No.1/92 issued for sugar unit. The assessee pointed out that two accounts maintained in respect of these two activities be taken as two different volumes of the same record. They further pointed out that there was no transfer of assets from one unit to other or transfer of management or location of unit, to result in the change in the constitution of the company. In the light of the above facts, the assessee pointed out that when the Revenue had accepted the availability of credit to the extent of Rs.44,06,511/- on Mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CESTAT contending that even as per Circular bearing No.B42/1/97-TRU dated 1st September, 1997, credit in respect of any input could be used for payment of duty on any final products without checking whether the input had been utilized in the manufacture of that final product or not and that Trade Notice No.98 CE 94 dated 28.9.1994 clarified that one registration certificate would be sufficient in case where the factory had two different portions located in the adjoining premises. Placing reliance on the decisions reported in 2001 (133) E.L.T.487 (Inox India Ltd. V. Commissioner of C.Ex, Vadodara) and 2001 (133) E.L.T. 567 (KM Sugar Mills Ltd. V. Commissioner), the assessee contended that there was no illegality in the order passed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the sugar unit belonged to the self-same management, located in self-same premises. As such there is no merger or transfer of one unit to another. Although, originally the assessee took two registration certificates, yet, realising the mistake, they had gone for one single registration for both the units. Considering the fact that the Revenue itself had accepted the utilisation of credit on the transferred Molasses to the extent of Rs.44,06,511/-, there is no reason why the balance, being the unutilised credit, should not be available or rejected at the hands of the assessee in the matter of demand of duty on the sugar manufactured. 9. Heard learned standing counsel appearing for the Revenue and the learned counsel appearing for the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elf admitted that the assessee would be entitled to the credit to an extent of Rs.44,06,511/- out of a total claim of Rs.1,38,69,137/- and the unutilised credit available was to the tune of Rs.94,62,626/-. 12. In the background of the facts stated above, rightly the assessee contended that what is true of Rs.44,06,511/- is also true of the unutilised credit of Rs.94,62,626/-. We agree with this line of reasoning. Proviso to Rule 57F of the Central Excise Rules provides that the credit of duty allowed in respect of any input be utilised towards the payment of duty on any other final product, irrespective of whether such inputs have been used actually in the manufacture of such final product. The only condition is that the inputs should hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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