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2007 (8) TMI 118 - AT - Central ExciseCenvat/Modvat - Revenue contended that the appellant contravened the Rule 8 of the CCR, 2002 by transferring the unutilised credit from one unit to another unit without transferring input/capital goods and not the ownership - Held that the contention was not correct and transfer of credit is valid
Issues involved: Transfer of credit from one plant to another, change of ownership, contravention of Rule 8 of the Cenvat Credit Rules, 2002.
Issue 1: Transfer of credit from Udaipur plant to Kaladera Plant The Revenue appealed against an order regarding the transfer of credit from one plant to another. The Revenue argued that there was no transfer of inputs or ownership between the plants. However, the Commissioner (Appeals) found that there was a takeover of the Udaipur plant by another company, and the ownership had changed. The Commissioner determined that the transfer of unutilized credit balance was allowed as per the rules. The Commissioner concluded that the appellant had correctly availed of the credit, and there was no revenue loss or procedural irregularity. Consequently, the impugned order was set aside, and the appeal of the appellant was allowed. Issue 2: Change of ownership and Rule 8 of the Cenvat Credit Rules, 2002 The Commissioner (Appeals) examined the change of ownership from Mewar Bottling Co. to Hindustan Coca-Cola Beverages Pvt. Ltd. in Udaipur. It was established that there was no contravention of Rule 8 of the Cenvat Credit Rules, 2002. The Tribunal found that the ground taken by the Revenue was not sustainable based on the ownership change and upheld the order of the Commissioner (Appeals). The appeal filed by the Revenue was rejected, and the decision was pronounced in open court. In conclusion, the judgment clarified the transfer of credit between plants and the significance of ownership changes in accordance with the Cenvat Credit Rules. The decision emphasized the importance of compliance with rules governing credit transfers and ownership transitions to avoid contraventions and ensure proper availing of credits.
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