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TMI Blog2007 (4) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... E/466/04 from "The Commissioner of Central Excise, Chennai v. M/s. Soft Caps (P) Ltd., Chennai" to "The Commissioner of Central Excise, Chennai v. M/s. Dr. Reddy's Laboratories Ltd., Survey No. 42, 45 46, Bachupalli, Qutubullapaur Mandal, Ranga Reddy District Andhra Pradesh, Pin 500 072' 2. It has been submitted in the appeal memorandum that M/s. Dr. Reddy's Laboratories (DRL), Ranga Reddy Dist, A.P. had purchased majority shares of M/s. American Remedies Limited (ARL) and thereafter amalgamated ARL with DRL. In view of the above development, the application seeks change of cause title as above. 3. Ld. Counsel appearing for the respondents does not have any objection to the proposed change of Cause Title. Accordingly the miscellaneou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory changing hands, SCPL had surrendered the Central Excise registration it had taken. In the impugned order, the Commissioner (Appeals) has upheld the order of the original authority dropping the proposal, inter alia, to demand credit relatable to inputs and the capital goods that had been transferred to SMPPL on sale along with land, building, factory and all of its machinery. In passing the impugned order, as well as the order-in- original, the lower authorities relied on the judgment of this Tribunal in Jamna Auto Industries Ltd. v. CCE [2001 (130) E.L.T. 181 (Trib)]. In the above decision, the Tribunal had found that all the inputs, work-in-progress (at the time of sale) had been converted into finished goods and all finished goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tant case, the transaction involved transfer of raw materials and capital goods and not any credit as the same had been used up. The transaction was not in accordance with Rules 57F(20) and 57F(21) as regards inputs and 57S(5) and 57S(6) as regards capital goods. As SCPL had surrendered Central Excise registration certificate, they were not in a position to utilize -the credit availed for discharging duty on final products. Therefore, the proposals made in the notice to recover credit of Rs. 4,82,791/- should have been confirmed. Therefore, the orders of the lower authorities required to be reversed. It was also submitted that revenue neutrality argued by M/s. SCPL was not adequate defence for non-payment of duty on the credit availed on ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not been removed from the factory to attract provisions of Rule 9 or 49 of Central Excise Rules. On transfer, the credit availed materials were all available to SMPPL engaged in the manufacture of the same goods indented to be manufactured with the impugned materials. Rule 57F(20) permitted a manufacturer to transfer unutilized credit in the RG 23A account, among other reasons due to change in ownership of the factory. As per Rule 57F(21) transfer of credit envisaged in Rule 57F(20) was permissible provided the stock of inputs as such or in process were also transferred along with the factory to the new owner. The provisions relating to capital goods contained in sub-rules (5) and (6) of Rule 57-S were pari materia with the correspondin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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