TMI Blog2022 (5) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... not? - HELD THAT:- On a cogent reading of sub-rules (1) and (2) of Rule 10 ibid, it transpires that transfer and availment of unutilized cenvat credit is permissible under the statute, subject to fulfillment of the conditions that transfer of business must be on account of change of ownership or on account of sale, merger, amalgamation etc.; that there should be specific provision for transfer of liabilities of the business of service provider; that transfer is allowed only if stock of input as such or in process, or the capital goods are also transferred along with the business premises to the transferee company; and that the credit particulars are duly accounted in the books for satisfaction of the jurisdictional officer of Central Excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emands on the appellants - appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 3014 of 2011 - Final Order No. 20204/2022 - Dated:- 28-4-2022 - SHRI S.K. MOHANTY, JUDICIAL MEMBER AND SHRI P. ANJANI KUMAR, TECHNICAL MEMBER Shri Harish Bindumadhavan, Advocate for the Appellant Shri P. Rama Holla, Superintendent (AR) for the Respondent ORDER Briefly stated, the facts of the case are that the appellants herein are engaged, inter alia, in the business of sale of information technology products and provision of information technology related services to their customers located within and outside the country; that as a provider of various taxable services, the appellant got themselves registered under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its to the transferee unit. On the basis of audit objection to such effect, the Department had initiated show-cause proceedings against the appellants, seeking denial of cenvat credit benefit availed by them. The matter arising out of the show-cause notice dated 01/09/2010 was adjudicated vide order dated 23/08/2011, wherein the original authority had disallowed the cenvat credit amounting to ₹ 3,22,84,927/- (Rupees Three Crores Twenty Two Lakhs Eighty Four Thousand Nine Hundred and Twenty Seven only) along with interest and also imposed equal amount of penalty on the appellants. Feeling aggrieved with the said impugned order, the appellants have preferred this appeal before the Tribunal. 2. Learned Advocate appearing for the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 006 (6) TMI 449 CESTAT Mumbai e. Hewlett Packard (India) Sales Private Limited V. Commissioner of Customs, Bangalore - 2007 (211) ELT 263 (Bangalore Tribunal) f. Commissioner, LTU Bangalore Vs. Bill Forge Pvt. Ltd. Bangalore 2011-TIOL-799-HC-KAR-CX 3. On the other hand, the learned AR appearing for the Revenue reiterated the findings recorded in the impugned order. 4. Heard both sides and perused the case records. 5. The impugned order, in this case, has confirmed the impugned demands on the appellants, holding inter alia that transfer of cenvat credit whether credit of duty paid on inputs or capital goods or credit of service tax paid on the input services, is allowable only if the stock of inputs as such or in proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such business, then, the provider of output service shall be allowed to transfer the CENVAT credit lying unutilized in his accounts to such transferred, sold, merged, leased or amalgamated business. (3) The transfer of the CENVAT credit under sub-rules (1) and (2) shall be allowed only if the stock of inputs as such or in process, or the capital goods is also transferred along with the factory or business premises 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 Deputy Commissioner of Central Excise or, as the case may be, the Assistant Commissioner of Central Excise. 7. On a cogent reading of sub-rules (1) and (2) of Rule 10 ibid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transfer had not been approved by the Hon‟ble High Court. Learned Commissioner appears to have erred in finding that transfer of cenvat credit on input services is permissible only on the amalgamation whereas in terms of Rule 10 (1) (2) of Cenvat Credit Rules, such a transfer is permissible on transfer of business on account of sale, merger, amalgamation, lease or transfer of business to a joint venture without specific provision for transfer of liabilities of such business. We find that there is no provision in the statute that each one of the situations mentioned therein should be approved by the Hon‟ble High Court. 9. We also note that in the column 5B in the ST-3 return, titled as cenvat credit taken and utilized ..... X X X X Extracts X X X X X X X X Extracts X X X X
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