2018 (2) TMI 1307

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..... sferred the entire equipment and materials of unit-IV to their unit-III. Consequently, they sought to transfer the entire credit available in their accounts to unit -III in terms of Rule 10 of the CENVAT Credit Rules, 2004. He pointed out that they had written a letter to the Assistant Commissioner, Division-I, Silvasa with copy of Assistant Commissioner, Central Excise Division-III, Silvasa intimating their intention to transfer the said credit in terms of Rule 10 of the CENVAT Credit Rules. They also annexed to the said letter, the list of equipment that they had intended to transfer and also the extracts of their CENVAT Credit account. Learned Counsel pointed out that proceedings were initiated against them to deny the CENVAT Credit and .....

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..... redit when they opted for following Notification No. 30/2004-CE. 4. We have gone through the rival submissions. We find that Rule 10 of the CENVAT Credit Rules, 2004 reads as under: - "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 sh .....

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..... fact that the appellant had opted for Notification No. 30/2004-CE and hence were required to reverse the credit in their account. The said matter would be a different issue, which needs to be dealt with separately. This is not relevant in the present proceeding as the present proceeding relates to credit that was available in unit-III at the material time and if transfer of that credit was admissible or not. Whether the credit itself was required to be reversed or not is to be decided independently. In absence of any proceedings in that regard, the said issue cannot be raised in this proceeding. 5. In view of the above, we find merit in the appeal filed and the same is allowed. ( Operative portion of the order pronounced in the Court )

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