Delay - Rule 10 Application Transfer of Cenvat

[Sandeep Soni]

Dear Expert,

Request to give your advice on below:

The proprietory firm business sale to New Company. All formatlities of old RC surrender & New RC Reg completed on 17.06.2013.Closing Cenvat of March 13 taken as opening ER-3 April to June with new company. This we have done without applying under Rule 10 for transfer of cenvat.

Till date we have not applied under Rule 10. Now Excise Superitendent has sent us letter as Scrutiny of ER-3 saying you have not taken permission under Rule 10 and CENVAT taken & utilised is liable for reversal.

Kindly advice how should I proceeds in this matter.

AI Summary

New Company Faces Reversal of CENVAT Credit Due to Non-Compliance with Rule 10 Transfer Requirements A proprietorship firm sold its business to a new company, completing all registration formalities by June 17, 2013. The closing CENVAT credit from March 2013 was carried forward in the new company's ER-3 returns for April to June without applying under Rule 10 for credit transfer. The Excise Superintendent issued a letter stating that permission under Rule 10 was not obtained, making the CENVAT credit liable for reversal. Respondents advised that Rule 10 requires satisfying the Deputy or Assistant Commissioner regarding the transfer of inputs and capital goods, suggesting the submission of relevant credit documents and excise returns to resolve the issue.