2016 (7) TMI 1028

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....galore, whereunder the demand of CENVAT credit of Rs. 49,08,230/- along with interest has been confirmed under the provisions of Rule 14 of CENVAT Credit Rules, 2004 read with Sections 11A and 11AB of Central Excise Act, 1944 and Sections 73 and 75 of Finance Act, 1994; a penalty of Rs. 2,000/- has also been imposed on the appellant under Rule 15(1) of CENVAT Credit Rules, 2004. 2. The appellant has been represented by the learned advocate Shri N. Anand, who inter alia has pleaded as follows: i. During November 2006, the appellant entered into lease agreement with M/s. Bangalore Pharmaceutical Research Lab (BPRL), a DTA unit for the premises and building, sheds, workmen, utilities like power, water supply and existing infrastructure for a....

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.... detailed list of assets transferred to the lessee as required under the Rule. The liabilities on account of lease have also been transferred to the lessee vide paras 8.4 and 8.5 of Lease Deed. Thus, liabilities have also been transferred to the lessee along with the connected benefits as per para 7.14 of the said Lease Deed. v. The appellant relies on the following case laws in support: a. Commr. of Cus. & C. Ex. Visakhapatnam-II vs. Nagarjuna Agrichem Ltd.: 2008 (222) E.L.T. 232 (Tri.-Bang.) - It held that Rule 10 of CENVAT Credit Rules allows transfer and utilisation of unutilised credit. The department s appeal against this decision of CESTAT, Bangalore before Andhra Pradesh High Court was dismissed in the case of Commissioner vs. Nag....

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....10 of Cenvat Credit Rules, 2004 granted the permission for transfer of CENVAT credit lying in capital account and input account with the lessor unit of BPRL to the lessee unit viz., M/s. Medriech Ltd., who is the appellant and when such permission has not been withdrawn, a show-cause notice was issued against such a transfer and later the demand along with interest was confirmed and penalty was also imposed. When there are number of case laws permitting such transfer of unutilised credit from the lessor unit to the lessee unit, even when initially the lessor unit is a DTA unit and after the execution of the lease agreement, when it is an EOU and lessee is also an EOU. There is no rational and merit in the demand confirmed against the appell....

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....serves as under: "5. We find that this issue has already been decided by this Tribunal in the case of Sandoz Pvt. Ltd. v. CCE - 2011-TIOL-673-CESTAT-MUM. = 2012 (278) E.L.T. 259 (Tri.). The said order of the Tribunal has been upheld by the Hon ble High Court of Bombay as reported in 2012-04-LCX-02-05. We also note that based upon the said judgment this Tribunal in the case of Matrix Laboratories Ltd. v. CCE - 2014-TIOL-2090-CESTAT-MUM. = 2015 (316) E.L.T. 168 (Tri.-Mum.) has also taken similar view. In the said judgment this Tribunal has observed as under : - "5.1 We observe that there is no bar for transfer of credit available in the books of accounts on the date of conversion of a unit in DTA into 100% EOU under Rule 10 of the Cenvat ....