2011 (9) TMI 165

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....ital goods were shifted to the new premises. 2. The assessee, M/s. Tata Auto Components Systems Ltd. is engaged in manufacture of excisable goods. Their unit is situated at No. 18/1 A3, Nayandahalli, Mysore-Road, Bangalore. They shifted the manufacturing activities to the new plant located at plot No.28A, Bidadi Industrial Area, Bangalore. They obtained new Central Excise Registration Certificate. The assessee transferred the balance amount of Cenvat Input Credit of Rs. 2,86,552/- with Rs. 5,730/- towards education cess. Cenvat capital goods credit and input service tax credit and education cess were lying unutilized in their books of account at Nayandahalli to Bidadi Industrial Area. A show-cause notice came to be issued on 12-9-2006 ca....

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.... goods were not shifted to new premises. In order-in-original, it is clearly admitted that the removal of inputs and capital goods to the new premises by following the proper procedure laid down under the Central Excise Rules, 2004 has been done. It is also not the case of department that on removal of inputs and capital goods as such, the assessee has not made/debited appropriate duty. For the unutilized balance in credit account, on such removal of inputs and capital goods to the new premises on payment of duty, the assessee is rightly eligible for the transfer of the balance to the new premises. For such transfers, no specific permission is needed from the department. Therefore, he set aside the order passed by the Assessing Authority an....

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....n which credit has been availed of are duly accounted for to the satisfaction of the Deputy Commissioner of Central Excise or, as the case may be, the Assistant Commissioner of Central Excise." 4. A perusal of the aforesaid Rules makes it very clear that if manufacturer of the final products shifts his factory to another site, the manufacturer shall be allowed to transfer the CENVAT credit lying unutilized in his accounts to such transferred factory. The said transfer is subject to the condition stipulated in rule 10(3) of the Rules, which provides that such transfer is permitted only if the stock of inputs as such or in process, or the capital goods is also transferred along with the factory or business premises to the new site, on whic....