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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 ..... e 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 010. 2.1 That during the scrutiny of ER-1 for the month of January 2006 submitted by the assessee, it was noticed that the unit has wrongly availed CENVAT Credit of Rs. 1,57,09,460/- showing as old credit balance transferred from M/s Santogen Spinning Mills, Sr.No.246, Khadoli Road, Vasona, Silvassa under Para 5 of the Return. On verification of records available, it appeared that M/s Santogen Spinning Mills, Silvassa (a unit of M/s Sonu Synthetics Ltd) was a manufacturing unit of excisable goods under Central Excise Registration Certificate No.AAACS 552 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .01.03.2005 and did not require to function as Central Excise registrant. 2.5 That the unit of M/s Santogen Spinning Mills, Silvassa was later on sold out to M/s Jai Corp directly by M/s Arcil and M/s Jai Corp obtained a fresh Central Excise Registration certificate No.AAACJ 2591 AXM 010 dt.09.12.2005 to carry out their 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities as available to M/s Santogen Spinning Mills. He would then submit that the appellant had taken the Central Excise registration certificate and filed the returns with the authorities. He would submit that the appellant has not done anything wrong holding for disallowing CENVAT Credit to him. After referring to the sale certificate given by M/s Assets Reconstruction Company (India) Limited (hereinafter referred to as M/s ARCIL), he would submit that the said sale certificate clearly indicate that the appellant had taken over the assets and liabilities in toto. It is his submission that having taken over the assets and the liabilities together, the appellant was entitled for CENVAT Credit lying in balance of M/s Santogen Spinning Mills. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 accounts to such transferred, sold, merged, leased or amalgamated factory. (2) If a provider of output service shifts or transfers his?business on account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on which now remains to be answered is whether the appellant herein had purchased the entire property along with the assets and liabilities or not. It would be proper to reproduce the sale certificate issued by M/s ARCIL. SALE CERTIFICATE (For Movable & Immovable Property) Whereas The undersigned being the Authorised Officer of the Asset Reconstruction Company (India) Ltd and having its registered office at 17th Floor, Express Towers, Nariman Point, Mumbai 400 021 (hereinafter referred to as 'Arcil') acting in its capacity as trustee of Arcil-CPS-002-I Trust under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and in exercise of the powers conferred under sub-section (12) of Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Bank 1 244473 23.11.2005 4,81,25,000.00 Canara Bank 2 241178 26.11.2005 14,43,75,000.00 Canara Bank TOTAL 19,25,00,000.00 The sale of the schedule property has been made with all encumbrances and liabilities including all workers' dues, known and unknown (except all encumbrances and liabilities to secured creditors in respect of above financial facilities including interest thereon as against the scheduled properties), as per the Terms and Conditions governing the Invitation to Quotation attached herewith as Annexure I. The sale has been made subject to the Terms and Conditions. (emphasis supplied) 12. It can be seen from the above reproduced sale certificate issued by M/s Arcil (As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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