2012 (12) TMI 797 - AT - Central Excise

Carry forward and set-off of underutilized cenvat credit - change of status due to amalgamation - Held that - Merger causes diminishing of the status of amalgamating companies after amalgamation. No Right existing before amalgamation cannot be claimed to be a right existing amalgamation - Carry forward and Set-off of unutilised cenvat credit in the hands of amalgamated company is denied - in favour of Revenue.

Summary

The case involves the question of whether unutilized cenvat credit before a change in status can be carried forward and set-off by an amalgamated company. The court ruled that rights existing before amalgamation cannot be claimed post-amalgamation. The appeal was dismissed as deposits were made after the merger, establishing the case for the Revenue.