Karnataka High Court
Commissioner Of Central Excise vs M/S Tata Auto Components Systems Ltd on 9 September, 2011
Bench: N.Kumar, Ravi Malimath
IN THE HIGH COURT 0}? IMRNATAKA, BANGAL§}RE
DATED THIS THE gm may 0? SEPTEMBER
PRESENT 'j A'
THE HONBLE MLJUSTICE} N ;~;LI:$;jq;;m'{j: "
AND
THE HONBLE; Mr.Jt3fsT1cfi:._ RA§?1 V %' '
C.E.A
BETWEEN: _
C0mmissi011er of
Excise, Bangaiore:--:--III __
Commissionerate, ._
C R Bufld§ng,_
Banga1o1'e~Q ii: " ' '--
{By 311 K
And; 1111 %
M / s.'F$i--;a 'AL1Vt,o'
Systems L1:_d;, VP1(;1; No.28'_A,
Bidadi Ind1iSii;;i£11..£Xrt§a,
Ramanagar Taluk,
V' .ABa::sg.fak';re4'%562 10$." 5. Respondent
' -__ {By §E'§..«§vPa{rfa::§*§;eSh\A?ara_:1, Adv.)
A T 13 {fled under Seiéiian Sfifi 0f {he Ceniraé
Excise "Act, £944; prayizxg ta $6: asidfi the final ardsr
--__ "~E§§Q.E§'F8}'08 in Appfiai ?%§<xEf§_98;'98 daéed E?.9,28G8
A ..ff'_g;fa$';ia¢d by that C§S'}1%f.R Ba_:3g;;a.E<>z'& at ;5§.§."i1'}{'":';l5°=§':E§"€3',u-55L
H "§'i'1;:3 appeai ES Gaming :32"; far mtaring this day;
VA J fieiivered the f0Howing:--
Lé
JUDGMENT
The Revenue has preferred this appeai cshaiiengirzg the order passed by the T ribunal, which has up.1°'--..¢1r:i the order of the Appellate Authority holding is entitied to the benefit of unutilised CI'€di"i:..__:'(iT'J 'e{I1VV"
the inputs and Capital goods :'v}éf(:'«$T':;ift£:d io_ ii's3W premises.
2. The assesses, M/s.Tat'aL»V. Pmt0 C':";_1'I1';:\Ta'3§'=3.ei*-figsSystems Ltd. is engaged in ma11.31fac't fifé: é?.ciSabIé"gA<§<3ds. Their unit': is A3, Nayandahaili, Mysore Road, A'Ba11ga1o;.*ef.}:V'~. *T{fhe3% shifted the manufacturing aCti¥'i§i€S t_he.f;ex%%'v_;j1ér:t heated at pie: N0.28A, Bidadi En(iii:Si:;i:2:1_g3;re93§';'Bangalore. They abtazlned new C€:1tr'a1 .%Z;':~;.:c3i&:V .E3eg3j§5si:'ati0:1 Ceriificatfi, The 3.8383386 transfsrred
--.'§§h.;e 'b§ii}.?;i1At:é._.1~~amouni 9? Cenaiaé Efnpzgt Cred}? of w§t.h R$.5JF'3@;'w i.0:>v2m:§S €&':.::".:aE:i@n C6/SS. 'V Ce:i%a§.i"'.§:a§it2:i goods Qfféififil and inpuf; Sewéce tax crcdit R ecixiéation (3888 were Ejmlg uxmtiiized in "fheir books of ;a§CCC}.§,iIEi at Nayandahafli ta Bidadi §nd;u$'i'.ria§ Area, A Show éiausé H0866 Game is be isgueai 0:; 129.2965 cafling upen CA} the Revenue to Show Cause as to why the Cenvai: input Credit should not be disallowed in terms of provision of Rule l{){3} ef the Cerzvat Credit Rules, 200é}4.;fe~a€t:i~.V_\vith Section 11A of the Central Excise Act, and penalty sheuld not be levieci»,A'V bln reply;Ehe"-as.seeee'e informed that they have i11fori'necl:""tl"l'elledepeiftfheiqfiflide 2 letter dated 28. 12.2005 Fegarcliilg .0? thtiizi; manufacturmg activity from §_;hleA:i;_r__0lc_vl mix' te_Atl1e§ir new unit situated at Bidacii Inclil-:~:;fri.al£-- informed that the inputs, semi' lfiiinisliledg' be transferred unde:;»:.fZiil'eA eegllmtl Credit Rules, 2004: and under 10- Credit Rules, 200% '1' hey further lf1fOTI11€d tlliatlall.éa':2if;Lt§l€§}i*y records had beem transferred to ;s;1'ex,v'-- gait leiiilté surzrenfiered their aria Registration "5{r;dll_;alse infermeé 'i7E3a:£: they had C€i'1'Jé"i"{. balance efl-.__R$f£;8fi;5:'§2/~ and Eéueziiien Ceess §:}2:la§'1ee 0%' "i'E:e3s* peimecl em. {feat Ehe ameuai. éue in _ ' zvéeféeeize heaéel Eéewezzei', the _é§eeeeei:r:g; A:;:'::l3e:z*i%3; epined 6' Vvfiai if iH"m.'{§.lizecE bE1§a§'1€€ in Cemfiai mseciil. seughfi to be irazisferred ie new remisee is 6ffE1i3L'5£€(.L it will five double 9 I3 § benefii ie aeeeeeeel Therefore, it was; helfi that the V E. §;M/ assessee is not entitled to the said benefit. Aggrieved by the said order, the aesesesee preferred an appeal before the Commissioner of Appeals. The Cemmiesioner'of'-Apijeais on re--eXam.in3.tion of the entire material .j<31,1 ' reeQr(:i.._V categorically held that it is not the' tmseief T that inputs and Capital geeds 'I10f:.»'vS_,:fAl'Aif*;s3~(jk\ premises. In Grder~1'r1~w01'igii'i':;3'..V1:VV:;"it teat the removal of geeeié the new premises by fellowing laid down under the Ce'n.'if;r§fl'E}€eise i3§G()__4fA}1as been done. It is also nb'fi'i:i1eviiataeeief 'd'epa.rtr1i'er1't'Vihat on removal of inputs and eapital such, the aesessee has met made/{ieE)'i'i:e{_i .V2;§ppi'vQ;5:'iLeEe duty, For the uI1uti1'i:»;ed " V' b&'1V§$:l'1(;;A€?.A in Aeredii"'2u;':e0uni, 02''; such removed of i:1_pu'Ete and eae;p7§i;?i:igg§eeéés fig} the new premiees on pE1y"§'I1€§1€ of éuify, the :"§g?ht§'y ehgibie fez" iihfi tranefer ef 'she balance fie the ":3;je_€zF premieee. Fer Sueh Eyzlnsfereg me egeeéfie " per_:f;:iSei{>'z: fie meeeéed §§"ee": {he ée;3ert.:'ee:':'i:. 'E'he3;efez'e; he .. 'fie: aside the erder paesed by ihe As'-sseseirig :'iu%,§'1e§§_ty and granted the benefit. Hence, the Revenue challenged that erder befere {he Tyibunaii whieh has upheié {he said 2%/A <l5's order. It is against the said order, the present appeal is filed.
3. Rule 10 of Cenvat Credit Rules, 2004 reads "Rule 10. Transfer of CENVAT c=:9edi:t.3'{l'} "
If a rnanufaeturer of the final prodzzeeteev Shifts his factory to another site" 0: the ,.f.9aet0ry».jE. tratmferred on account of lehangey in ex§me'f3'l1tp .' or on account of sale, mei%ge1+., A'amalga;:11atie;i',~.,VV' lease or transfer of the fgzctorj/_t1d 3 j0§r3't.'uve;.f3tu;§te l with the specific pI'0Vi*3i0n 'fer' -.tr;a:nS-.fei?"' of liabilities of such Vfalctory, .,the11, fg the manuf8.<:t1,1rer shall be"'al.3e*.ved_ to trémeifer the CENVAT credit lying 1'_1r11;1til1".2:,ed "Ir; his aceozmts to such ttransferred', 'sold, leased or amalgamated faCtQ"fY;~. ' l " ' V ..__Ii'«a p1_*i)1.rf.ideIf of output service shifts or ti'an'efefs_" 'his..bu.si11ese on aeeount ef change in' voWnerShipA"o.r""--{;f1V account of sale, merger, a1na1'g..an':atien;~--,leaee or transfer' of the business ' teya joim'. jeevntuéfe with the epeeifie pmvieien fer ' trarxefer of livabilities of such bueihess, then, the pfiwiclier of output service shall he allewed to T lt':*v3,:2sfef:f 'Ehe C-ENVAT credit lying unutiltzed in VA hi$"'_e,_ee:e'a,t.nte te S'£,"L{.'h transferred. Sfildt mergefi, V leaeeet er emaggmatefi bllf-3i'_E1€'SS. x l V V {3} The transfer ef the CEl"~lVA'f' eredlt A :3-_:::fier eubmulee {E} aizé {2} she}: he elleeeeel A ere}: if the eteeli ef iepzrzte ee eusth er in preeessl er the eapital geefie is; else transferred alengwith the faeteery er busmeee premises te the new site or ownership and the inputs, or capital goods, on which ereéit has been availed Of are duly aeeeunted fer te the satisfaetien of the l}ep'ut.y' Cemmtseiener ef Cer;1:ra.E Excise 0:1 be made out by the Assessing Auiihority. The Commissioner as well as the Tribunal are juetified in Setting aside the order and restoring the benefit to the ElSS€SS€€.
In the light of the aforesaid CiiS:CFL;l'$_S'é'..:jaI€lV; ('the subetantial question of law is a11swereci_1.. of "i:ir1ue".,_ assessee and against the _reve111,i,e. »Ac'Cj:3f'di1'ig'1jg.,4Elie' e.§;pi3a3'*..
is dismissed.
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