Customs, Excise and Gold Tribunal - Bangalore
Gland Pharma Ltd. vs Commissioner Of Central Excise on 21 July, 2005
Equivalent citations: 2006(193)ELT344(TRI-BANG)
ORDER S.L. Peeran, Member (J)
1. The stay application and appeal are taken up together for disposal as the issue lies on a short compass. The appellant factory stopped production completely at their unit at Amirpet and the same was informed to the Range Superintendent on 8-8-2002. By their letter dated 7-7-2003 addressed to the ACC, Hyderabad - E division, they contended that they have no proposal to manufacture further at their factory at Amirpet. They also stated that there are no finished goods to be cleared in the factory and only expired finished goods are available for which they have already submitted an application for destruction of the same on 12-4-2001. They contended that they have unutilised Cenvat credit of Rs. 11,08,774/- in their records at Amirpet. They have prayed for transfer of this Cenvat to their unit at Dundigal. The appellants submitted that reason for closure of the Amirpet Unit was on account of show cause notice issued from AP Pollution Control Board. Due to Pollution Board's Proceedings they were compelled to close the unit at Amirpet and start the same unit at Dundigal. They have shifted the machinery and the workers from there. In terms of Rule 8(2) of Cenvat Credit Rules they contend that they are eligible for transfer of the credit at Amirpet. The Assistant Commissioner in the speaking order allowed the request. However, on an application field by the AC before the Commissioner (Appeals) the same was reversed. The Commissioner (Appeals) in the impugned order has confused the provisions of Rule 8 of the Cenvat credit rules. He has noted that they have not closed their unit at Amirpet and it is not a case of shifting of one unit to another unit. Apparently he has not gone through the records and not examined the AC's speaking order which is based on the evidence produced by the Assessee showing the closure of unit at Amirpet due to Pollution Control Board's order and shifting the same unit to Dundigal. Rule 8 of Cenvat Credit Rules correctly applies to the facts of the case and they are eligible for transfer of the Cenvat credit. The order passed by the Commissioner (Appeals) is not correct. The Assistant Commissioner has examined the issue in detail and has given a speaking order. The speaking order is upheld by allowing the appeal. Stay and appeal are allowed.
Pronouced and dictated in Open Court