TMI Blog2018 (2) TMI 896X X X X Extracts X X X X X X X X Extracts X X X X ..... of liabilities of such factory, then, the transferor will be allowed to transfer the Cenvat credit lying unutilized to the transferee company - on demerger of appellant’s Company, the respondent is entitled to avail CENVAT credit. Another ground taken by Revenue is that the respondent has not taken prior permission from the department for availment of CENVAT credit - Held that: - in the show-cause notice it is mentioned that on 23.07.2010 itself the respondent has intimated to the department for demerger and availment of CENVAT credit. Moreover as per Rule 10 of Cenvat Credit Rules, 2004, there is no such requirement to obtain prior permission for demerger of the Company - CENVAT credit rightly availed. Appeal dismissed - decided agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th regard to the demerger and have not taken permission from the department to avail CENVAT credit therefore they are not entitle for CENVAT credit. 3. Heard the parties. 4. Identical issue came up before Tribunal in the case of Commissioner of Central Excise v. Samruddhi Cement Ltd. - 2014 (314) ELT 826 wherein the Tribunal itself has observed as under and allowed CENVAT credit:- 6.1 Rule 10(1) of the Cenvat Credit Rules, 2004, reads as follows : Transfer of CENVAT Credit. - (1) If a manufacturer of the final products shifts his factory to another site or the factory is transferred on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the factory to a joint venture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... products, the respondent submits that they have not taken credit of these amounts in their books of accounts and they are also not claiming credit in respect of this amount. This claim of the appellant can be verified by the Revenue and if the appellant has taken any such credit, the same shall be liable to be reversed. Therefore, on demerger of appellant s Company, the respondent is entitled to avail CENVAT credit. 4.2 Another ground taken by Revenue is that the respondent has not taken prior permission from the department for availment of CENVAT credit. I find that in the show-cause notice it is mentioned that on 23.07.2010 itself the respondent has intimated to the department for demerger and availment of CENVAT credit. Moreover ..... X X X X Extracts X X X X X X X X Extracts X X X X
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