2009 (1) TMI 225

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....Appellant. Shri M.K.A.K. Mohiddin, JDR, for the Respondent. [Order].- M/s. United Silicates Pvt. Ltd., Coimbatore (USPL) merged with M/s. Kiran Pondy Chems Ltd. (KPCL) on 1-10-2004 in terms of a Memorandum of Understanding (MOU) entered into between them. On merger M/s. KPCL took Cenvat credit of inputs and capital goods lying in the accounts of USPL. The factory stood transferred to KPCL al....

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....y. 2. The appellants have assailed the impugned order mainly on the ground that the Show Cause Notice basic to the proceedings had proposed to deny the CENVAT credit availed by them solely on the ground that KPCL had not taken permission from the Deputy Commissioner of Central Excise as envisaged under Rule 10 of CCR. The lower authorities confirmed the demand of Rs. 4,63,794/- on the basis tha....

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.... order of the Commissioner (Appeals) are based also on the ground that the appellants have not satisfied the authorities as regards its eligibility to the balance of CENVAT credit at the time of merger. Rule 10 of CCR reads as follows: "(1) If a manufacturer of the final products shifts his factory to another site or the factory is transferred on account of change in ownership or on account of ....

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....aris Bio-chemicals Ltd. v. Commissioner of Central Exice Vadodara - 2005 (179) E.L.T. 216 (Tri.-Mumbai), has held that for transfer of credit to an amalgamated unit, no prior permission is required under this provision. As long as the input and capital goods are accounted to the satisfaction of the department, the credit is transferable." 4. As per the Show Cause notice, the sole ground for den....