TMI Blog2017 (12) TMI 955X X X X Extracts X X X X X X X X Extracts X X X X ..... is again brought back to Dadar for the purposes of manufacturing of grey and processed fabrics. On plain reading of Sub-Rule 1 of Rule 8, it is apparent that it contemplates shifting the entire factory of the assessee. Rule 8(1) will not apply if only a part of the manufacturing activity is shifted to another site. In the present case, out of three units at Dadar which were used for manufacture of final product of grey and processed fabric, only one unit has been shifted and not entire factory - SubRule 1 of Rule 8 of the CENVAT Rules will not apply to the facts of the case. SubRule 6 of Rule 57F talks of shifting of the plant or factory to another site - this rule also not applicable in the present case. Appeal dismissed - decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1944 (for short the said Rules ). According to the case made out by the appellant-assessee, the spinning plant was shifted from Dadar unit to village Dhamni in District Raigad. By a letter dated 13th May 2002, the appellant informed the Assistant Collector about the shifting and requested him to transfer the unutilised credit of additional duty on textile and textile articles lying as on 30th April 2002 to unit at Dhamni. According to the case of the appellant, it was availing benefit of CENVAT credit of duty paid on fibres for use in the manufacture of yarn. According to the case of the appellant, spinning plant along with complete stock of inputs, capital goods and plant and machinery were shifted to unit at village at Dhamni. 5 By ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jected on the ground that unutilised balance cannot be refunded in cash. After considering the reply filed by the appellant to the show cause notice, by order dated 12th May 2005 the Assistant Commissioner rejected the cash refund on the ground that the whole factory was not transferred to Dhamni as required by Rule 8 of the CENVAT Rules. The order dated 19th January 2005 passed by the Commissioner (Appeals) was challenged by the respondent-revenue by preferring an appeal to the Appellate Tribunal. Being aggrieved by the order dated 12th May 2005, the appellant preferred an appeal before the Commissioner of Central Excise. By order dated 29th September 2005, the Commissioner (Appeals) allowed the appeal by observing that the order dated 12t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tration? (c) Whether the Tribunal was right in emphasizing on registration to construe the meaning of the term factory ? 10 The learned senior counsel for the appellant has taken us through the impugned Judgment and order. He also invited our attention to sub-rule 1 of Rule 8 of the CENVAT Rules. Subrule 1 of Rule 8 talks about shifting of factory by manufacturer. He invited our attention to definition of factory in clause (e) of subsection 2 of the said Act. He submitted that the factory includes any part of factory in which excisable goods are manufactured. He submitted that a part of factory will be also covered by sub-rule 1 of Rule 8 of the CENVAT rules. He invited our attention to Rules 57A to 57G of Central Excise Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fer of liabilities of such factory, then, the manufacturer shall be allowed to transfer the CENVAT credit lying unutilized in his accounts to such transferred, sold, merged, leased or amalgamated factory. (2) The transfer of the CENVAT credit under sub-rule (1) shall be allowed only if the stock of inputs as such or in process, or the capital goods is also transferred alongwith the factory to the new site or ownership and the inputs, or capital goods, on which credit has been availed of are duly accounted for to the satisfaction of the Commissioner. 12 Sub Rule 1 of Rule 8 is applicable when the manufacturer of final products shifts his factory or the factory is transferred on account of change in ownership. The benefit of transfe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he unit at Dhamni. Thus, only a part of manufacturing activity has been transferred from Dadar unit to Dhamni unit and the yarn manufactured at Damni is again brought back to Dadar for the purposes of manufacturing of grey and processed fabrics. 15 Rule 8 forms a part of CENVAT Rules. On plain reading of Sub-Rule 1 of Rule 8, it is apparent that it contemplates shifting the entire factory of the assessee. Rule 8(1) will not apply if only a part of the manufacturing activity is shifted to another site. In the present case, out of three units at Dadar which were used for manufacture of final product of grey and processed fabric, only one unit has been shifted and not entire factory. We have carefully perused the application dated 18th May ..... X X X X Extracts X X X X X X X X Extracts X X X X
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