TaxTMI 
TaxTMI 
2025 (5) TMI 1906
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....ly filing their returns; the appellants had an unutilized CENVAT credit of Rs.1,37,10,954; all the inputs were utilized in the manufacturing of final product; Revenue informed the appellants, vide letter dated 23.12.2009, that the unutilized CENVAT Credit, can be transferred in their name as per provisions of Rule 10 of the CENVAT Credit Rules, 2004. 2.1. Officers conducted physical verification of the premises of the appellant and noticed that there were only old capital goods that stood transferred in the account of new unit; however, no stock of input was available; the unit was closed since last 4 to 5 years and that as on 31.03.2003 the unutilized CENVAT Credit, of inputs/Capital goods, was same as transferred by them to the new unit. The department entertained a view that in view of the name change, the appellants are not entitled to utilize the credit lying in the records; Assistant Commissioner Central Excise, vide Order-in-Original dated 01.11.2010, disallowed the credit of Rs.1,12,75,181, on the ground that there was no stock of inputs and as such requirement of 10(1) & 10(3) of the CENVAT Credit Rules, 2004 was not fulfilled; the original authority however, allowed the ....
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....t changed its name, with effect from 6.11.2009, is not factually correct. He submits that as per the provisions, the transfer of CENVAT credit under the said rule shall be allowed 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 to the new site or ownership and inputs or capital goods on which credit has been availed of a duly accounted for to the satisfaction of the Deputy Commissioner/Assistant Commissioner of Central excise; the appellant vide their letter dated 17.12.2009, informed the jurisdictional Deputy Commissioner of Central Excise, that since the name of TDT Copper Ltd has been changed to Alchemist Metal Ltd, they have been issued fresh registration number and that credit of Rs.24,35,773/- in respect of capital goods and Rs.1,12,75,180/- in respect of inputs and Rs.1000 in PLA automatically stands transferred in the name of Alchemist metals Ltd; the letter dated 14.12.2009, claimed to have been issued by the Superintendent, Central Excise Range-III, Rewari, did not seem to have been issued. 5. Learned Authorized Representative submits further that it is incorrect to say that the Assist....
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....ital goods are accounted to the satisfaction of the department; the idea of incorporating condition under Rule 10(3) is that after availing credit, the inputs should not be diverted otherwise. 7. In reply to the argument of the learned Authorized Representative, Learned Counsel submits as follows. * Only the name of the company was changed from TDT Copper Ltd. to Alchemist Metals Ltd; there was no Sale/Transfer/Shifting/ Amalgamation/ Merger etc. of unit; hence, Rule 10 of CENVAT Credit Rules is not applicable in the present case. * M/s TDT Copper Ltd. was having Pan base central excise registration dated 24.12.1999; the same was again taken; From last there was no manufacturing activity in the factory for about 4-5 years; however, the appellants were filing their ER-1 returns regularly till October 2009 in the name of TDT Copper Ltd, showing balance of CENVAT Credit taken on the Inputs already utilized in manufacturing and the Capital goods. * The name was changed by the registrar of companies w.e.f. 06.11.2009 and the same was informed to the department; they started filing ER-1 return in the name of Alchemist Metals Ltd from November 2009; The appellants vide their letter....
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....edit pertaining to the units which were operational at the time of transfer of credit. The case law only bold that no physical movement of the goods are necessary. But in the present case, the earlier unit was closed 4/5 years back. In fact, the appellant has already applied for the surrender of registration on their own volition. In the circumstances, the decision of Assistant Commissioner cannot be faulted with. The case laws relied upon in the appeal do not find their application in the situation like the present one. The Assistant Commissioner has rightly rejected the appeal. 9. It is the case of the appellant that there was only a change in the name from TDT Copper to Alchemist and there was neither change of ownership nor shifting of the plant and machinery involved. Therefore, it was incorrect on the part of the Revenue to invoke Rule 10 of CENVAT Credit Rules to deny the transfer of CENVAT credit which was already available. We find that Rule 10 of the CENVAT Credit Rules, 2004 is as under: RULE 10. Transfer of CENVAT credit. - (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 ....
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....The appellant submits that they have got the name changed from M/s TDT Copper Limited to M/s Alchemist Metal Limited w.e.f. 06.11.2009. On the advice of the Department, they have got the registration changed in the name of M/s Alchemist Metal Limited. The Authorized Representative for the Revenue argues that the letter which the appellant claims to have been received by them advising them to change the registration certificate is not on record. We find on going through the record of the case that the Revenue vide letter dated 23.12.2009 put the appellants to notice that the registration number of TDT obtained in 1999 was not issued by them. 11. We find that the impugned orders rely on contradictory assumptions that the appellants were not given registration in 1999 and that they have surrendered their registration on their volition in 2009. It is apparent from the records of the case that the appellants, vide letter dated 18.12.1999, have applied for the registration in the name of TDT; therefore, even if the registration in the name of TDT has not been given, though applied for, it can be understood that such registration is either accorded or deemed to have been accorded. Only b....