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TMI Blog2014 (11) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... hich made it clear that they wanted to make a debit entry even after surrender of licence. In the case in hand, it is on record that the Central Excise registration certificate issued to M/s Santogen Spinning Mills was surrendered after granting of Central Excise registration to the appellant herein. impugned order is incorrect, unsustainable and liable to be set aside. - credit allowed - Decided in favour of Assessee. - Appeal No.E/1339/2007 - Order No. A/11778/2014 - Dated:- 21-10-2014 - Mr. M.V. Ravindran and Mr. H.K. Thakur, JJ. For the Appellant : Shri A.N. Mishra, Adv. For the Respondent : Shri K. Sivakumar, Addl.Commissioner (AR) JUDGEMENT Per: M.V. Ravindran 1. This appeal is directed against the OIO No.10/DEM/VAPI/2007, dt.14.09.2007. 2. The relevant facts, in brief, are that M/s Jai Corp Ltd (Spinning Division), Survey No.246, Vasona Village, Khanvel Road, Silvassa (hereinafter referred to as M/s Jai Corp for the sake of brevity) is engaged in the manufacture of synthetic blended/spun yarn falling under Chapter sub heading 55095100 and 55092100 of the Central Excise Tariff Act, 1985 and holding Central Excise Registration No.AAA CJ 2591 AXM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturing activity following the procedure of Central Excise Law; that M/s Jai Corp Limited does not have any understanding or any contract with M/s Santogen Spinning Mills, Silvassa and appointed M/s Yashash Yarn Pvt.Ltd. and then M/s Akhilesh Spintex Pvt.Ltd as a custodian-cum-agents who decided not to work under Central Excise Registration availing the benefit under Notification No. 30/2004-C.E., dt.09.07.2004, even though in the month of January 2006, M/s Jai Corp Ltd availed credit of ₹ 1,57,09,460/- showing as old credit balance transferred from M/s Santogen Spinning Mills. On verification of the records i.e. RG23A Pt II, it was observed that vide Entry No.109 dt.30.01.2006 M/s Jai Corp have taken CENVAT Credit of ₹ 1,53,92,959/- and in RG23C Pt.II, vide Entry No.27 dt.30.01.2006 of ₹ 3,16,501 which totally comes to ₹ 1,57,09,460/-. M/s Jai Corp has been utilizing the CENVAT Credit wrongly taken towards payment of Central Excise duties. 3. Show cause notice was issued to the appellant as to recover the said CENVAT Credit availed with interest and also for imposition of penalty. Appellant herein contested the issue on merit as well as on limitati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial of CENVAT Credit which was availed by the appellant when they purchased the property from M/s ARCIL. It is undisputed that M/s Santogen Spinning Mills was taken over under SAFARESI Act by the bankers and handed over to M/s ARCIL. The findings of the adjudicating authority basically revolves around the provisions of Rule 10 of CENVAT Credit Rules, 2004 for denying the CENVAT Credit on the ground that there was no transferring of the inputs and capital goods to the appellant herein. 8. In our considered view, the findings recorded by the adjudicating authority are incorrect for more than one reasons. 9. In order to appreciate the correct position, it is required that the provisions of Rule 10 of CENVAT Credit Rules, 2004 be read. RULE 10. Transfer of CENVAT credit.? ? (1) If a manufacturer of the final products shifts his factory to another site or the factory is transferred on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the factory to a joint venture with the specific provision for transfer of liabilities of such factory, then, the manufacturer shall be allowed to transfer the CENVAT credit lying unutilized in his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion (12) of Section 13 read with rules 7 9 of the Security Interest (Enforcement) Rules, 2002 has in consideration of the payment of ₹ 19.25 Crores (Rupees Nineteen Crores Twenty Five Lakhs) sold on behalf of the following secured creditors (hereinafter referred to as Secured Creditors ) 1. Arcil as trustee of Arcil-CPS-002-I Trust 2. Unit Trust of India 3. Life Insurance Corporation of India 4. Industrial Investment Bank of India Ltd 5. Arcil as trustee of Arcil-Sonu Synthetics Ltd Trust 6. Vijaya Bank 7. Calyon Bank in favour of M/s Jai Corp Ltd, a company registered under the Companies Act, 1956 and having its registered office at A-6, MIDC, Indl. Area, Nanded 431 603 the assets described and shown in the Schedule hereto, secured in favour of the Secured Creditors by M/s Sonu Synthetics Ltd towards the financial facilities offered by Secured Creditors as under: Name of the Secured Creditor Principal Outstanding (Rs.in Crores) (As on 31.03.2004) Arcil as trustee of Arcil-CPS-002-I Trust 11.20 Unit Trust of India 0.50 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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