2018 (2) TMI 896

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....ate Finance) - for respondent ORDER Per: Ashok Jindal Revenue is in appeal against the impugned order wherein learned Commissioner (Appeals) has allowed CENVAT credit to the appellant on account of demerger of appellant Company wherein CENVAT credit were lying unutilised. 2. The facts of the case are that initially the respondent was owner of M/s. Varroc Engineering Pvt. Ltd. The said ....

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....NVAT credit. It is also alleged that they have not intimated to the department with regard to the demerger and have not taken permission from the department to avail CENVAT credit therefore they are not entitle for CENVAT credit. 3. Heard the parties. 4. Identical issue came up before Tribunal in the case of Commissioner of Central Excise v. Samruddhi Cement Ltd. - 2014 (314) ELT 826 wherein....

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....ease or transfer of the factory with the specific provision for transfer of liabilities of such factory, then, the transferor will be allowed to transfer the Cenvat credit lying unutilized to the transferee company. In the present case there is no dispute that the factory has been transferred to appellant and there is a change in ownership and the appellant has taken over the liabilities of the tr....

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....oks of accounts and they are also not claiming credit in respect of this amount. This claim of the appellant can be verified by the Revenue and if the appellant has taken any such credit, the same shall be liable to be reversed." Therefore, on demerger of appellant's Company, the respondent is entitled to avail CENVAT credit. 4.2 Another ground taken by Revenue is that the respondent has not....