9911796707
TMI Blog1997 (2) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... dvat credit has not been allowed to be transferred to the new manufacturer, namely M/s. Chandra Hi-Tech Engineers. The same is the position with regard to the PLA balance. 2. The facts of the case are that M/s. Chandra Industries was partnership firm consisting of six partners. They were manufacturing street lighting poles, hamilton poles, C.I. brackets etc. They were registered with the Central Excise Department and were availing Modvat benefit. The firm was registered with the Director of Industries as a SSI unit. This partnership firm was dissolved and a new firm by the name of M/s. Chandra Hi-Tech Engineers Pvt. Ltd. came into existence. They took over the firm M/s. Chandra Industries along with all the assets. M/s. Chandra Hi-tech En ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver. He also submitted that the certificate issued by the Registrar companies shows that M/s. Chandra Hi-Tech Engineers Pvt. Ltd. is a limited company. The ld. Counsel submitted that a perusal of the memorandum and articles of association shows that all liabilities and assets of the partnership concern have been taken over by the new company and therefore, they should be entitled to the transfer of the amount of Modvat credit lying in the books of M/s. Chandra Industries. The ld. Counsel also submitted that this Tribunal in the case of Ashapura Electricals Ltd. v. C.C.E., reported in 1989 (42) E.L.T. 709 had held : 7. As regards the issues (i) (ii) above, it is apparent from the Articles of Association that they have acquired and taken ov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and with the following of the procedural requirements under Rule 56A, they should be considered to have substantially complied with the requirements under Rule 56A. Hence, we are of the view that there is no justification for denial of the proforma credit only on the ground that fresh permission has not been obtained by the succeeding company in terms of sub-rule (2) of Rule 56A. Though the two judgments cited by the learned advocate related to non-production of D-3 declaration, the judgement of the Bombay High Court cited by him 1988 (17) ECR 17 relates to a case where even the application for proforma credit has not been given. In this view of the matter, we conclude that in the case of this type denial of proforma credit on this techni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Heard the submissions of both sides. We find that Modvat credit is admissible under rule 57A of the Central Excise Rules, 1944. Rule 57A stipulates that Modvat credit of duty can be taken if the inputs and the final products are specified by Notification under this Rule and that if the input and the final product are specified then Modvat credit can be taken. There is no dispute about specification of the product under Notifications issued u/r 57A. Utilization of Modvat credit has been provided for u/r 57F. Rule 57F(1) provides: The inputs in respect of which a credit of duty has been allowed under Rule 57A may be used in or in relation to the manufacture of final products for which such inputs have been brought into the factory; or sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of duty under bond for export, provided that the waste, if any, arising in the course of manufacture of such intermediate products is also returned to the said factory: Provided that the said waste need not be returned to the said factory if the appropriate duty of excise leviable thereon has been paid." Sub-rule (4) of Rule 57F provides : (4) Credit of specified duty allowed in respect of any inputs may be utilised towards payment of duty of excise (i) on any of the final products in or, in relation to the manufacture of which such inputs are intended to be used in accordance with the declaration filed under sub-rule (1) of Rule 57G, or (ii) on the waste, if any, arising in the course of manufacture of the final produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final product in which these inputs are used. There is no doubt that M/s. Chandra Industries had procured the inputs for manufacture of the final product. The nature and character either of the input or the final product does not change if in the meantime the factory changes hands unless the inputs are not handed over to the successor or there are no inputs to be handed over to the successor. There is no allegation to show that there were no inputs on the date when the new firm applied for transfer of the balance of the RG 23A Pt. I Pt. II. There is no allegation that the inputs and the finished goods were not taken over by the new factory or the new licensee, the role of the licensee becomes minor if the inputs and the final products are ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
