2015 (10) TMI 2069

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....le to the CETA85 through their two units namely Thavalakuppam (Unit-I) and Uruvaiyaru (Unit-II). Both the units have been manufacturing excisable goods and availing Cenvat credit for payment of duty. With effect from 01.04.2012, Rule 10A was inserted in CCR, 2004 vide Notification No. 18/2012-CE (NT) dated 17.03.2012. 3. In view of insertion of Rule 10A of CCR, 2004, on 31.05.2012, Unit-II transferred their SAD credit balance of Rs. 6,37,53,414/- to Unit-I under the cover of Delivery Challan (i.e. transfer challan). Show Cause Notice dated 30.05.2014 was issued to both the units proposing to deny irregular transfer of cenvat credit of Rs. 6,37,53,414/- from Unit-I and to recover the amount along with interest and also to impose penalty on ....

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.... prematurely transferred the credit in May, 2012 itself instead they should have taken at the beginning of the quarter ie. 01.07.2012. He submits that the amended Rule has the prospective effect and they have transferred the credit after the Rule came into force only from 01.04.2012. The question of premature transfer does not arise as this will apply for prospective transfer of credit for every quarter. He also submits that they have not utilized the entire credit and approximately Rs. 2.5 crores only was utilized as on 01.07.2012. 5. On the other hand, the Ld. AR on behalf of the Revenue reiterated the findings in the impugned order and also submits the appellants have not followed the conditions prescribed under the Notification and the....

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....udicating authority at para 11,11.2, A, B, C of the impugned order has dealt the issue in detail and came to the conclusion and held that there is no dispute on the eligibility of transfer of unutilized credit under Rule 10A of CCR and held that the appellants complied the conditions of the notification. Only ground on which it was denied is that whether such transfer of credit can be only after 01.07.2012 i.e. at the beginning of the quarter as stipulated in the notification. We find that Rule 10A which is self-contained provision introduced for transfer of credit of AED (SAD) and it has prospective effect. Once it is came into effect from 01.04.2012, transfer of unutilized credit from one unit to other unit is automatically permissible an....