TMI Blog2019 (2) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... d ESID, as also from merged ESCL, would mean that all the inputs and the capital goods on which CENVAT credit was availed by the unmerged units were available in the premises. Rule 10 do not mandate for any separate written permission from jurisdictional authorities. The language of Rule 10(1) specifically states that manufacturer shall be allowed to transfer the CENVAT credit lying unutilized in his accounts to such transfer, sold, merged, leased or amalgamated factory. The Provisions of Rule 10(3) is also complied in this case as the stock of inputs as such or in process or capital goods are also to be transferred along with the factory premises, in the name of merged ESCL and there is due accounting in merged ESCL. Ineligible CENV ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant herein had two units M/s Empee Sugars and Chemicals Ltd., Naidupet M/s Empee Sugars, IAP Division, Naidupet. M/s Empee Sugars and Chemicals Limited (ESCL) is engaged in manufacture and clearance of sugar and molasses. While, M/s Empee Sugars (IAP) Division (ESIAD) is engaged in manufacture of dutiable items like Denatured Spirit, Ethanol, Carbon dioxide from molasses. Both the units had different registration numbers. Subsequently, both the units merged together and became M/s Empee Sugars and Chemicals Ltd., and were granted registration by the jurisdictional authorities. ESCL started functioning as single unit after merger w.e.f 2005-2006 and CENVAT credit lying in balance ESCL and ESIAD were merged together and balance was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 05 (179) ELT 216] Hewlett Packard (I) Sales (P) Ltd., [2007 (211) ELT 263] and Kiran Pondy Chems Ltd., [2009-TIOL-489-CESTAT-MAD.)] wherein, it is clearly settled that there is no requirement of obtaining any prior permission from any authority for transfer of credit. It is also further submitted that in the case of capital goods appellants are eligible for CENVAT credit of 50% of the Central Excise duty paid on such capital goods in the year of receipt and balance 50% in the next year, they had availed 100% credit in the subsequent year which is being objected to. The law is also settled on this point in the case of Herbicure P. Ltd., [2007 (216) ELT 216] Keinhin Fie [2007 (213) ELT 637] Ace Timez [2004 (170) ELT 371]. 6. Learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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 with the specific provisions for transfer of liabilities of such factories, then, the manufacturer shall be allowed to transfer the CENVAT credit lying unutilized in his accounts to such transfer, sold, merged, leased or amalgamated factory. The assesses had applied for merger of the units and obtained a new registration certificate No. AABCE 5658 GXM 001 on 05.06.2008 merging the two old registrations but not taken permission for transfer of unutilized CENVAT credit balance as required in Rule 10(3) of CENVAT Credit Rules, 2004. Rule 10(3) is reproduced for ready ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is Bio-Chemicals, Hewlett Packard (I) Sales Kiran Pondy Chems Ltd., (supra). In the facts and circumstances of this case, we hold that denial of unutilized/balance CENVAT credit to the merged unit is incorrect and the impugned order on this point is unsustainable. 9. As regards the demand of ineligible CENVAT credit availed on capital goods, we find that there is no dispute as to the fact that the capital goods were received from the year 2004-2005 to 2006- 2007 and the CENVAT credit (100%) of the Central Excise Duty paid on these capital goods was availed in May, 2008 when the ESIAD unit started functioning fully. The records clearly indicate that the appellant had not availed any credit on these capital goods during the earlier year ..... X X X X Extracts X X X X X X X X Extracts X X X X
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