2006 (9) TMI 28

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....ia) Ltd. is a limited company from 1990. It started a spinning division at Bhilwara in Rajasthan in 1996 and obtained a central excise licence. Subsequently, in 1999, M/s. Sangam Spinners imported an electricity generating set for captive power supply. It took Modvat Credit on (capital) goods as permissible. Subsequently, spares and fuels for running power generating sets were also purchased on a ....

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....f different activities of M/s. Sangam (India) Ltd. under heads like textile fabric, power and infrastructure is only for the purpose of management accounting and management decision-making and it did not, in any way affect the legal rights and liabilities of M/s. Sangam (India) Ltd. and there was no transfer of capital goods as alleged. 3The abovecontentions of the appellants were rejected in a....

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....gam Spinners and Sangam Power are two separate units and that there was transfer of capital goods received by Sangam Spinners to Sangam Power which attracted reversal of Modvat credit and the appellant contending that the legal entity is one and the same and there was no transfer from one unit to other and furthermore, there was no change in the location of equipment or utilization of the power ge....

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....t reversal of credit. Separate excise registration for each product under manufacture is also no proof of a separate manufacturer for each item. 7Common premises, integrated use of resources all have continued all along. There has been no separation of entities through demergers in terms of law. Only separate internal account keeping is taking place. This is a common practice for management con....