TMI Blog2016 (7) TMI 1028X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Ashok K. Arya, Technical Member For the Appellant : Mr. N. Anand, Advocate For the Respondent : Shri Pakshi Rajan (AR) ORDER Per : Ashok K. Arya This appeal filed by M/s. Medriech Limited is before this Tribunal against the Order-in-Appeal No.JMJ/JMJ/29/2012 dated 5.3.2012 passed by Commissioner (Appeals), LTU, Bangalore. The impugned Order-in-Appeal has upheld the Order-in-Original dated 25/26.5.2011 passed by Additional Commissioner, LTU, Bangalore, whereunder the demand of CENVAT credit of ₹ 49,08,230/- along with interest has been confirmed under the provisions of Rule 14 of CENVAT Credit Rules, 2004 read with Sections 11A and 11AB of Central Excise Act, 1944 and Sections 73 and 75 of Finance Act, 1994 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AT Credit of ₹ 49,08,230/- along with interest and imposed a penalty of ₹ 2,000/-. iv. Rule 10 of CENVAT Credit Rules, 2004 enables the transfer of CENVAT credit from lessor to the lessee and in their case, condition of transfer of capital goods and input account has been fulfilled. All the fixed assets lying with the unit were transferred to the lessee on hire basis as per the agreement. The agreement executed between M/s. BPRI and the appellant M/s. Medriech Ltd., dated 22.11.2006 gave detailed list of assets transferred to the lessee as required under the Rule. The liabilities on account of lease have also been transferred to the lessee vide paras 8.4 and 8.5 of Lease Deed. Thus, liabilities have also been transferred to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es specific transfer of liabilities which has not been done in this case. As per Circular No.77/1999 Cus. dated 18.11.1999, the CENVAT credit lying unutilised would lapse on conversion of DTA unit into an EOU unit and cannot be utilised after said conversion. 4. All the facts on record and the submissions of both sides have been carefully considered. 5. At the outset, it is little strange that when the department vide Assistant Commissioner, Central Excise, Yeshwanthpur s, letter dated 23.11.2007 under Rule 10 of Cenvat Credit Rules, 2004 granted the permission for transfer of CENVAT credit lying in capital account and input account with the lessor unit of BPRL to the lessee unit viz., M/s. Medriech Ltd., who is the appellant and wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transfer the Cenvat credit lying unutilized in his accounts to such transferred, sold, merged, leased or amalgamated factory. The above Rule grants the manufacturer to utilize the credit which was lying in the lessor s factory. The Commissioner (Appeals), after detailed consideration has found that on the lease being entered into by the appellants, there was credit available for utilization.............................. 5.2 Further CESTAT, Mumbai in the case of Privi Organics Ltd. vs. CCE, Raigad (supra) inter alia observes as under: 5. We find that this issue has already been decided by this Tribunal in the case of Sandoz Pvt. Ltd. v. CCE - 2011-TIOL-673-CESTAT-MUM. = 2012 (278) E.L.T. 259 (Tri.). The said order of the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me 100% EOU were outside the scheme of modvat/Cenvat credit, which is not so after the CENVAT Credit Rules, 2004 have come into existence. The present case is pertaining to the period after 2004................................. 5.3 CESTAT, Mumbai in the case of Watson Pharma Pvt. Ltd. vs. CCE, Thane-I (supra) also has observed as under: 3. Considering the fact that the issue came up before this Tribunal in the case of Sandoz Pvt. Ltd. v. CCE - 2011-TIOL-673-CESTAT-MUM wherein this Tribunal held that on conversion of DTA to 100% EOU the assessee is entitled to avail Cenvat credit on inputs as well as capital goods lying in their factory at the time of conversion. As per the decision in the case of Sun Pharmaceuticals Inds. v. CCE, P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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