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TMI Blog1992 (5) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... n 19-3-1987 after the same was shifted and another factory was started at Nanjangud. 2. Shri Sampath, the learned counsel for the appellants submitted that the appellants had their factory at Bangalore, which he wanted to shift to Nanjangud, and accordingly sought the permission of the authorities on 19-3-1987 and again on 8-2-1988 applied to the authorities for transfer of the credit that stood in balance at the Bangalore unit in the RG. 23 A/c. to Nanjangud, where the factory was shifted. Permission for shifting of the factory was accorded and the authorities also checked the raw materials and plant and machinery, but the authorities did not allow the transfer of the credit from the RG. 23 A/c. of Bangalore factory to Nanjangud. The lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m one factory to another factory whenever there is shifting. This cannot be construed to be a part of the procedural taw to be made retroactive. It would be seen that accumulation of credit is actually utilised in the discharge of the assessee's duty liability and is almost akin to payment in cash. When the factory itself is shifted to some other place, a statutory authority functioning within the four corners of a statute, would not have jurisdiction to accord any permission for transfer of such unutilised credit which existed in the earlier factory unless a specific power is given under the statute or a source of such power is traceable in any provision of the statute. Transfer of credit deals with the substantive right of a person for di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... without payment of duty for whatever purpose and these had to be treated as manufacture of the said factory even though these had been manufactured in other units. In this context, therefore, it would appear that there was no-flexibility provided for transfer of the credit from a licensed unit to another unit. The learned counsel fairly concedes that in case where a manufacturer has more than one factory even though manufacturing the same goods with the same inputs, the credit cannot be transferred to one unit to the other unit. In this background, therefore, unless there was a exception provided under the Rules for the transfer of the MODVAT credit from a unit which was existing at once place to a unit if it was shifted to another place th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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