2022 (9) TMI 1120

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....tire cement division operations to the appellants as per the agreement dated 02.01.2015. As per the terms of the said agreement, apart from purchasing the plant and machinery, the appellants also took over the stock of inputs, semi-finished goods, finished goods and stores, on transfer of the cement division. For the purpose of transfer of various stock of inputs, the transferor company M/s. JSW Steel Ltd. had raised the invoices to the transferee company i.e. the appellant herein and with regard to the service portion contained in the value of procurement of the inputs, in stock, the said transferor company had issued the debit notes to the appellant company. Based on such debit notes (5 numbers), the appellants have availed cenvat credit ....

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....the appeal filed by the appellant. Feeling aggrieved with the impugned order dated 30.11.2018, the appellants have preferred this appeal before the Tribunal. 2. Learned Advocate appearing for the appellants submitted that since the raw material and stores have been transferred to the appellants in change of ownership of the transferor company, availment of cenvat credit on the basis of debit note is in conformity with the cenvat statute. Thus, she submitted that in absence of any contravention of the provisions of Cenvat Credit Rules, 2004 denial of the cenvat benefit is not proper and justified. Learned Advocate further submitted that the proceedings initiated by the department for recovery of the adjudged demands are barred by limitati....

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.... expenses were incurred for procurement of inputs by M/s. JSW Steel Ltd., such company was not merged or taken over by the appellant. Further, there is also no mention about the specific services, which were procured by the transferor company. Sub-rule (1) Rule 3 of the Cenvat Credit Rules, 2004 permits a manufacturer of final product to take cenvat credit of various duties paid on the inputs or capital goods received in the factory of manufacture of final products and input services by such manufacturer. Since M/s. JSW Steel Ltd. was entirely a separate corporate entity at the time of procurement of inputs, the requirements of the said statutory provisions have not been complied with by the appellants inasmuch as, at the time of procuremen....