9911796707
TMI Blog2014 (3) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... the factory has not been shifted to anywhere but only the ownership has been changed. Therefore, the clause of transfer liability is not applicable to the facts of this case. With regards to the denial of credit for non-compliance of provisions of Rule 57S(5), the appellant has produced a letter on record for requesting of transfer of the ownership of the factory along with the details of inputs and capital goods lying unutilized in their account is on transfer of the factory to Exide on 04.05.1998. The said document has not been appreciated by the lower authorities at all. When there is evidence on record, therefore the observation by the authorities that they have not produced any documents, is not sustainable - amount is required to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate authority. Aggrieved by the said order the appellant is before me. 3. The learned Counsel for the appellant submits that the Rule 57F (20) and the Rule 57S(5) of the Central Excise Rules, 1944, deals with the situation of transfer of CENVAT credit lying in their CENVAT credit account and as per the said Rules, on being change of ownership, the CENVAT credit attributable to inputs, can be transferred to the buyer of the unit irrespective of the clause that liabilities towards Central Excise payments are transferred or not. Further, it is submitted that the appellant filed relevant records showing unutilized credit on account of inputs and capital goods and the same were duly entered in the Books of Accounts as per Rule 57F(20) and Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Form RG 23A maintained under Rule 57G and lying unutilized on account of shifting of the factory belonging to the manufacturer, to another site, or On account of change in ownership, or Change in the site of a factory resulting from sale, merger, amalgamation or transfer to a joint venture with the specific provision for transfer of liabilities of the old factory, to transfer such unutilized credit to such transferred, sold, merged or amalgamated factory. 7. As per the said Rule, the credit can be transferred on account of shifting of factory, belonging to the manufacturer, to another site, or on account of change of ownership or change in the site of a factory resulting from sale, merger, amalgamation or transfer to a jo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y has discussed an order dated 19.2.2002 vide which a demand of Rs.21,888/- along with interest and a penalty of Rs.7,000/- against the appellant was confirmed. The said amount is required to be paid by the appellant and in this regard the appellant has written to the concerned authorities for adjustment of the said amount from the CENVAT credit lying unutilized. Therefore, I hold that the CENVAT credit lying unutilized is required to be allowed to transfer of inputs and capital goods to 'Exide' after deducting the outstanding amount payable by the appellant. The amount payable by the appellant is to be adjusted first before allowing the said unutilized CENVAT credit on account of inputs and capital goods. 10. With these terms th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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