TaxTMI 
TaxTMI 
2010 (8) TMI 227
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....ariff Act, 1985. One of the products manufactured by Bilag is Allethrin. Bilag is availing cenvat credit of duty paid on inputs used in the manufacture of final products including Allethrin and are also availing cenvat credit on duty paid on the capital goods used in the factory. Bilag entered into an agreement on 29-7-2005 with M/s. Sumitomo Chemicals India Pvt. Limited (hereinafter referred as Sumitomo for short) by which Sumitomo agreed to purchase the entire Allethrin business including manufacturing. On 18-8-2005, Sumitomo entered into another agreement by which the Bilag was granted the rights to use the production facility of Allethrin. Bilag informed the Deputy Commissioner vide letter dated 17-9-2005 about the sale of Allethrin pro....
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....Both these divisions were thus independent divisions, manufacturing different items, but situated within the factory of M/s. Jamna Auto Industries Limited. M/s. Jamna Auto Industries Ltd. sold the stabilizer bar division as such to M/s. Jamna NKH Allevard Suspension Components (Jamna NKH for short) effective from 1-1-1999. Consequent to the sale re-registration of leaf spring division and stabilizer bar division was done and the ground plan was revised and registration was done in the name of M/s. Jamna NKH for Stablizer bar division and in the name of M/s. Jamna Auto Industries Ltd. for leaf spring division. The capital goods and the various inputs work in process and the finished goods i.e. stabilizer bars, lying there were also transferr....
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....(20) and sub-rule (21) become redundant. We find that there is force in the arguments of the ld. Counsel for the appellants, sub-rule (20) and sub-rule (21) covers transfer of the credit lying in the books of the seller and sub-rule (21) covers the transfer of inputs lying in a stock with the seller on the date of sale. Similarly capital goods are covered by sub-rule 57S-(5) and credit on capital goods is covered by Sub-rule (6). In view of these specific provisions covering the change in ownership of the factory, we hold that general provisions of Rule 57F(2) shall not be applicable to the facts of the present case. We, therefore, hold that the case of the appellants is covered by sub-rule (20) and sub-rule (21) of Rule 57F and for the pur....
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....s only selling of part of the asseessee's factory relating to Allethrin and leasing back the same to the appellants. If the department's contention that Rule 10 of Cenvat Credit Rules was applicable should have been followed is accepted, what would have been done in this case is Sumitomo would have applied for transfer of credit when the facilities were sold to them and thereafter, when the facility was leased back Bilag should have applied again for availment of credit. This is nothing but duplicate scriptory work and in view of the fact that whole factory was not transferred, the provisions of Rule 10 would not be applicable. Further, in respect of capital goods, they are required to be used in the factory of manufacturer of the final pro....