Tribunal grants waiver in Cenvat credit transfer case.

The Tribunal granted a waiver of pre-deposit and stayed the recovery in a case involving the transfer of Cenvat credit from an old unit to a newly incorporated unit. The Tribunal found that the old unit's Cenvat credit could not be transferred to the new unit due to the nature of incorporation, despite the appellant's argument that it was a mere change of name. The appeal was allowed to proceed, with the Tribunal acknowledging the need for a thorough examination of all aspects involved.

---

---

Issues: Transfer of Cenvat credit to a newly incorporated unit on reincorporation.

Analysis:
The case involved the issue of transferring Cenvat credit from an old unit to a newly incorporated unit. The appellant, formerly known as M/s. Vishnu Barium Chemicals Private Ltd., entered into a Joint Venture with M/s. Solvay Barium Strontium GMBH and obtained a new Central Excise Registration Certificate in the name of M/s. Solvay Vishnu Barium Private Limited. The Revenue contended that the Cenvat credit standing in the old unit cannot be transferred to the newly incorporated unit. The appellant argued that it was merely a change of name, similar to shifting a factory, and relied on a previous ruling. The JCDR, however, distinguished the case, stating that this was not a case of shifting the unit but the incorporation of a new unit, and hence, the old unit's Cenvat credit cannot be transferred.

Upon considering the submissions, the Tribunal acknowledged that a question of law was involved, and all aspects needed to be examined thoroughly. The Tribunal found a prima facie case made out by the appellants and, therefore, decided to grant a waiver of pre-deposit and stay the recovery. The stay application was allowed, and the appeal was scheduled to proceed in its turn. The judgment was pronounced and dictated in open court by the Tribunal.

---