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TMI Blog2019 (2) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... m the appellant, we take up the appeal for disposal on merits even in the absence of any representation. 3. Heard the Learned Departmental Representative and perused the records. 4. The relevant facts that arise for consideration are appellant herein had two units M/s Empee Sugars and Chemicals Ltd., Naidupet & M/s Empee Sugars, IAP Division, Naidupet. M/s Empee Sugars and Chemicals Limited (ESCL) is engaged in manufacture and clearance of sugar and molasses. While, M/s Empee Sugars (IAP) Division (ESIAD) is engaged in manufacture of dutiable items like Denatured Spirit, Ethanol, Carbon dioxide from molasses. Both the units had different registration numbers. Subsequently, both the units merged together and became M/s Empee Sugars and Che ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pital goods should be transferred to new merged unit and the same should be accounted in the books of accounts; adjudicating authority did not consider the law on this point as decided in the case of Solaris Bio-Chemicals Ltd., [2005 (179) ELT 216] Hewlett Packard (I) Sales (P) Ltd., [2007 (211) ELT 263] and Kiran Pondy Chems Ltd., [2009-TIOL-489-CESTAT-MAD.)] wherein, it is clearly settled that there is no requirement of obtaining any prior permission from any authority for transfer of credit. It is also further submitted that in the case of capital goods appellants are eligible for CENVAT credit of 50% of the Central Excise duty paid on such capital goods in the year of receipt and balance 50% in the next year, they had availed 100% credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CENVAT credit to the merged ESCL had relied upon relevant provisions of Rule 10 of CENVAT Credit Rules which are reproduced: "Rule 10(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 provisions for transfer of liabilities of such factories, then, the manufacturer shall be allowed to transfer the CENVAT credit lying unutilized in his accounts to such transfer, sold, merged, leased or amalgamated factory.'' The assesses had applied for merger of the units and obtained a new registration certificate No. AABCE 5658 GXM 001 on 05.06.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit to the merged unit only on the ground that permission was not taken from the jurisdictional authorities, is not in consonance with the law as laid down by the Tribunal in the case of Solaris Bio-Chemicals, Hewlett Packard (I) Sales & Kiran Pondy Chems Ltd., (supra). In the facts and circumstances of this case, we hold that denial of unutilized/balance CENVAT credit to the merged unit is incorrect and the impugned order on this point is unsustainable. 9. As regards the demand of ineligible CENVAT credit availed on capital goods, we find that there is no dispute as to the fact that the capital goods were received from the year 2004-2005 to 2006- 2007 and the CENVAT credit (100%) of the Central Excise Duty paid on these capital goods was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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