TaxTMI 
TaxTMI 
2022 (5) TMI 11
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....untry; that as a provider of various taxable services, the appellant got themselves registered under the provisions of the Finance Act, 1994; that the appellants avail cenvat credit of service tax paid on the taxable services and utilized such credit for payment of service tax on the output taxable services provided by them. In this case, the appellant had acquired business of two corporate entities namely, Telelogic India Pvt. Ltd. ("Telelogic") and Cognos Software Pvt. Ltd. ("Cognos") in the month of November 2009 and January 2010 respectively. The acquisition of the said two companies were effected through Business Transfer Agreements entered into between the parties, containing specific provisions for transfer of assets and liabilities ....
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....lants have preferred this appeal before the Tribunal. 2. Learned Advocate appearing for the appellants submitted that no restrictions have been imposed in the cenvat statute, providing that cenvat credit of service tax paid on the input services cannot be availed by the transferee unit upon sale/merger with the business units of the transferors. He further submitted that there is no condition prescribed in sub-rules (1), (2) & (3) of Rule 10 ibid that only central excise duty paid on inputs or capital goods shall be eligible for the cenvat benefit and not the service tax paid on the input services received by the recipient of services/transferor company. He further submitted that the provisions of sub rule (3) of Rule 15 ibid cannot be i....
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....pital goods or credit of service tax paid on the input services, is allowable 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 and that the credit availed on the goods are duly accounted for to the satisfaction of the department. The impugned order has also recorded that the provisions of sub-rules (2) and (3) of Rule 10 ibid have not been complied with by the appellants and as such, they are not permitted to avail or utilize the cenvat credit balance lying in the accounts of the transferor unit. 6. Transfer of cenvat credit lying unutilized in the books of accounts of a provider of taxable output service, who transfers his business premises on account....
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.... as the case may be, the Assistant Commissioner of Central Excise." 7. On a cogent reading of sub-rules (1) and (2) of Rule 10 ibid as above, it transpires that transfer and availment of unutilized cenvat credit is permissible under the statute, subject to fulfillment of the conditions that transfer of business must be on account of change of ownership or on account of sale, merger, amalgamation etc.; that there should be specific provision for transfer of liabilities of the business of service provider; that transfer is allowed only if stock of input as such or in process, or the capital goods are also transferred along with the business premises to the transferee company; and that the credit particulars are duly accounted in the books ....