TMI Blog2015 (10) TMI 2069X X X X Extracts X X X X X X X X Extracts X X X X ..... of credit of AED (SAD) and it has prospective effect. Once it is came into effect from 01.04.2012, transfer of unutilized credit from one unit to other unit is automatically permissible and the Rule also specifies that such transfer should takes place at the end of the quarter, which is in our opinion has prospective effect and only permissible at the end of a quarter. In the present case, as seen from the records, unit-II which was defunct and the credit remained unutilized was correctly transferred on 31.05.2012, immediately after introduction of Rule on 01.04.2012, as they are eligible to transfer the same from 01.07.2012. Even though they have transferred the credit on 31.05.2012, they have not utilized the entire credit and only ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17.03.2012. 3. In view of insertion of Rule 10A of CCR, 2004, on 31.05.2012, Unit-II transferred their SAD credit balance of ₹ 6,37,53,414/- to Unit-I under the cover of Delivery Challan (i.e. transfer challan). Show Cause Notice dated 30.05.2014 was issued to both the units proposing to deny irregular transfer of cenvat credit of ₹ 6,37,53,414/- from Unit-I and to recover the amount along with interest and also to impose penalty on both the units. The adjudicating authority confirmed the recovery of ₹ 6,37,53,414/- along with interest and penalty of ₹ 3,00,000/- on Unit-I. There is a further penalty of ₹ 3,00,000/- on Unit-II.Hence the present appeals. 4. The Ld. Advocate appearing on behalf of the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 012. The question of premature transfer does not arise as this will apply for prospective transfer of credit for every quarter. He also submits that they have not utilized the entire credit and approximately ₹ 2.5 crores only was utilized as on 01.07.2012. 5. On the other hand, the Ld. AR on behalf of the Revenue reiterated the findings in the impugned order and also submits the appellants have not followed the conditions prescribed under the Notification and they have transferred the last credit amount taken two years before, which is not permissible under Rule 10A of CCR. 6. We have carefully considered the submissions by both sides and perused the records. The short issue involved in this case relates to transfer of unutilize ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omplied the conditions of the notification. Only ground on which it was denied is that whether such transfer of credit can be only after 01.07.2012 i.e. at the beginning of the quarter as stipulated in the notification. We find that Rule 10A which is self-contained provision introduced for transfer of credit of AED (SAD) and it has prospective effect. Once it is came into effect from 01.04.2012, transfer of unutilized credit from one unit to other unit is automatically permissible and the Rule also specifies that such transfer should takes place at the end of the quarter, which is in our opinion has prospective effect and only permissible at the end of a quarter. In the present case, as seen from the records, unit-II which was defunct and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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