Permission for transfer of Money Credit on acquisition/amalgamation of existing factory by another owner - Central Excise - 3/93-CX.8

Permission for transfer of Money Credit on acquisition/amalgamation of existing factory by another owner Circular No. 3/93-CX.8 dated 11-3-1993 [From F.No. 263/2/93-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Permission for transfer of Money Credit on acquisition/amalgamation of existing factory by another owner. Pursuant to receipt of a representation to allow transfer of Money Credit, (availed under Rule 57K) lying unutilised in a manufacturer's account to another manufacturer on the eve of change of ownership of the Company or amalgamation with a new company, issue has been examined by the Board. It is seen that there is no provision in the Money Credit is to allow transfer of credit from one manufacturer to another manufacturer or from one unit to another unit under any circumstances. In case of change in ownership, if the new manufacturer wants to continue under Money Credit Scheme, he has .... fresh declaration under Rule 57(O). He would be eligible to avail credit only on the inputs which are used in the manufacture of final product after filing the said declaration. After filing required declaration, the new manufacturer would be eligible to take money credit on the inputs lying in stock subject to fulfilment of requirements of Rule 57(O). However, any excess utilised credit lying in books of earlier manufacturer would and would not be available to the new manufacturer. 2. The field formation may be suitably informed. 3. Receipt of this circular may please be acknowledged.