9911796707
TMI Blog2016 (3) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant acquired first 50% of the equity shares of M/s. Karamchand Appliances Pvt. Ltd. (Unit - II) Baddi on 21.03.2003 and remaining 50% on 12.05.2005. The scheme of amalgamation of the Companies was approved by the Honble Delhi High Court vide Order dated 09.10.2006, stating therein that the effective date of transfer would be from 01.06.2005. Thereafter, the Appellant got the Certificate of registration from the Registrar of Companies under the Companies Act, 1956 on 23.11.2006. The appellant also got itself registered with the Central Excise Department on 24.01.2007, pursuant to the application made by it on 28.12.2006. 3. During the course of verification of the records in the factory of the appellant, the Officers of internal audit w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.2005 in terms of the Hon'ble Delhi High Court Order dated 09.10.2006. Thus, both the companies prior to such effective date i.e. 01.06.2005 were separate entities and as such, there was no scope for transfer of disputed cenvat credit of Rs. 31,12,209/- lying in the cenvat credit account of M/s.Karamchand Appliances Pvt. Ltd. to the appellant, prior to such effective date. Hence, the submission of the ld. Advocate is that since disputed credit has not been utilised by the appellant, the question of its recovery through the impugned proceedings is not in conformity with the statutory provisions. To substantiate his above stand that effective date of transfer would be from 01.06.2005 and not from the date of transfer of shares i.e. 12.05.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .10.2006 of the Hon'ble Delhi High Court, there is no scope of transfer of any cenvat credit balance lying in the cenvat credit account of M/s. M/s. Karamchand Appliances Pvt. Ltd. to the appellant prior to such date. Non-availability of cenvat balance in the account prior to 01.06.2005 shows that the same might have been utilised by M/s. Karamchand Appliances Pvt. Ltd., for which the cenvat demand cannot be fastened against the appellant. 8. On perusal of Rule 10 of the Cenvat Credit Rules, 2004, it reveals that there is no specific stipulation contained therein that prior permission is required from the statutory authorities for transferring the cenvat credit as a result of amalgamation/merger. In absence of any specific prohibition cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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