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2016 (3) TMI 65 - CESTAT NEW DELHI

2016 (3) TMI 65 - CESTAT NEW DELHI - 2016 (337) E.L.T. 422 (Tri. - Del.) - Transfer of Un-utilised cenvat credit balance - amalgamation - cenvat account in relation to input/input service, which were utilised for payment of duty on goods manufactured/cleared on or after 12.05.2005 - Held that:- As find from the available records that the share holdings of M/s.Karamchand Appliances Pvt. Ltd. has been transferred to the appellant on 12.05.2005, but the Scheme of amalgamation was approved by the Ho .....

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06 of the Hon’ble Delhi High Court, there is no scope of transfer of any cenvat credit balance lying in the cenvat credit account of M/s. M/s. Karamchand Appliances Pvt. Ltd. to the appellant prior to such date. Non-availability of cenvat balance in the account prior to 01.06.2005 shows that the same might have been utilised by M/s. Karamchand Appliances Pvt. Ltd., for which the cenvat demand cannot be fastened against the appellant. - Decided in favour of assessee - Excise Appeal No. E/57991/20 .....

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t, 1985. 2. The appellant acquired first 50% of the equity shares of M/s. Karamchand Appliances Pvt. Ltd. (Unit - II) Baddi on 21.03.2003 and remaining 50% on 12.05.2005. The scheme of amalgamation of the Companies was approved by the Honble Delhi High Court vide Order dated 09.10.2006, stating therein that the effective date of transfer would be from 01.06.2005. Thereafter, the Appellant got the Certificate of registration from the Registrar of Companies under the Companies Act, 1956 on 23.11. .....

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ed for payment of duty on goods manufactured/cleared on or after 12.05.2005. Utilisation of cenvat credit was objected to by the Department, on the ground that such credit was required to be transferred to the appellant and thereafter to be utilised only after being allowed by the concerned Central Excise Officer in terms of sub-rule (3) of Rule 10 of the Cenvat Credit Rules, 2004. The show cause proceedings initiated by the Department culminated in the adjudication order dated 30.08.2011, where .....

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ducing the quantum of equal penalty to ₹ 5,00,000/-. Hence, this present appeal before the Tribunal. 4. Shri Shekhar Vyas, ld. Advocate appearing for the appellant submitted that merger of M/s. Karamchand Appliances Pvt. Ltd. with the appellants company was effective from 01.06.2005 in terms of the Hon ble Delhi High Court Order dated 09.10.2006. Thus, both the companies prior to such effective date i.e. 01.06.2005 were separate entities and as such, there was no scope for transfer of disp .....

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of transfer of shares i.e. 12.05.2005, the ld. Advocate has relied on the decision of this Tribunal in the case of Commissioner of Service Tax, Delhi-I vs. ITC Hotels Ltd. reported in 2012 (27) STR 145 (Tri.Delhi). The ld. Advocate further submitted that Rule 10 of Cenvat Credit Rules no where specifies that prior permission is required from the statutory authorities for transferring the cenvat credit as a result of merger/amalgamation. 5. On the other hand Shri G.R. Singh, ld. D.R. appearing f .....

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