2011 (4) TMI 344

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.... transferred capital goods on which Cenvat credit of Rs.8,49,708/- was taken. The Appellant did not clear the capital goods under provisions of Rule 3(5) of Cenvat Credit Rules, 2004 by reversing applicable Cenvat credit. The Appellants have been contesting that they are entitled to transfer the capital goods from their factory at Faridabad to their factory at Roorkee under provisions of Rule 10(3) of Cenvat Credit Rules, 2004,   3. A Show Cause Notice issued demanding of amount as envisaged in Rule 3(5) was confirmed under the order-in-original along with interest and penalty under Section 11AC equal to the amount demanded. The Appellant filed an Appeal with the Commissioner (Appeals). The Commissioner (Appeals) upheld the demand a....

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....s to the new factory. Rule 10(3) is a condition to be satisfied for transferring credit under Rule 10(1). Since credit could have been transferred under Rule 10(1) and since there was no such transfer there was no question of allowing transfer of capital goods under this Rule 10(3). She argues that this is a case where capital goods have been removed from the factory at Faridabad and squarely covered by Rule 3(5) of Cenvat Credit Rules will apply.   6. Considered arguments on both the sides.   7. Rule 10 of Cenvat Credit Rules is reproduced below :-   Rule 10 Transfer of CENVAT credit. - (1) If a manufacturer of the final products shifts his factory to another site or the factory is transferred on account of change i....