TMI Blog2023 (3) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... of the agreement, it is found that there is a clear intention between the parties to transfer the ownership of the machinery belonging to the appellant unit to the lessee unit. Such transfer is done along with transfer of raw materials, components, capital goods etc. which indicates that the lessee unit is put into the shoes of a manufacturer in the place of the appellant-company. The agreement has to be construed as to what is the intention of the parties who have entered into agreement and not by word to word analysis. On going through the entire agreement, it is clear that there is consensus ad idem to transfer the ownership along with assets and liabilities to the lessee unit. Thus, the rejection of the request to transfer CENVAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 provision for transfer 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) If a provider of output service shifts or transfers his business on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the business to a joint venture with the specific provision for transfer of liabilities of such business, then, the provider of output service shall be allowed to transfer the CENVAT credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise duty as applicable under law. This being the case, the Department ought not to have rejected the request for transfer of cenvat credit on technical grounds. 3.1 Ld. A.R Shri S. Balakumar supported the findings in the impugned order. 4. heard both sides. 5. The issue to be decided is whether the rejection of the request to transfer the cenvat credit balance to the lessee unit is legal and proper. The provision under Rule 10 has already been noticed above. The Department has referred to the agreement between the parties to deny the permission to transfer the cenvat credit, with the reason that there is no express stipulation for transfer of all liabilities of the appellant-company to the lessee unit. On perusal of the agreement, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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