2022 (4) TMI 362

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..... N ENTERPRISES PVT. LTD. VERSUS COMMISSIONER OF C. EX., VADODARA [ 2006 (6) TMI 449 - CESTAT, MUMBAI] , wherein this Tribunal has held that where the stock did not exist and the capital goods, on which the credit was availed, were duly accounted for, transfer of Cenvat credit lying unutilised, should not be refused. The appellant is entitled for transfer of Cenvat credit lying in their Cenvat credit account on transfer of the factory although no input or work in progress is on record - appeal allowed - decided in favor of appellant.
SHRI ASHOK JINDAL, MEMBER (JUDICIAL) AND SHRI P. ANJANI KUMAR, MEMBER (TECHNICAL) Shri Rajesh Chhiber, Advocate - for the appellant. Shri Amit Bhardwaj, Authorized Representative (DR) - for the Respondent. .....

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..... he learned Counsel for the appellant submits that the reasoning of the appellate authority beyond the finding of the original Adjudicating Authority who denied the request of transfer of credit on the basis of no stock of input, as such, or in process of capital goods were transfer. The said finding contrary to Rule 10 of the Rules and issue has already been settled in favour of the appellant reported in Commissioner of Central Excise, Pondicherry versus CESTAT - 2009 (240) E.L.T. 367 (Mad.); Kevin Enterprises Pvt. Ltd. versus Commissioner of Central Excise, Vadodara - 2009 (15) S.T.R. 119 (Tri. - Mumbai) ; & Aar Aay Products Pvt. Ltd. versus Commissioner of Central Excise, New Delhi - 2003 (157) E.L.T. 40 (Tri. - Del.). 4. On the other ha .....

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..... on which credit was availed were duly accounted for, as contemplated by Rule 8(2)of the Cenvat Rules. It is evident that the question of transferring stock of inputs could arise only if it exists in cases where capital goods on which credit has been availed have been duly accounted for. In other words, where the stock did not exist and the capital goods, .on which the credit was availed, were duly accounted for, transfer of Cenvat credit lying unutilised, should not be refused. For statistical purposes, where in such cases there is no stock of inputs, the transfer entry would show transfer of "Nil" stock". 7. Therefore, we hold that appellant is entitled for transfer of Cenvat credit lying in their Cenvat credit account on transfer of the .....

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