JAISHREE PACKAGING Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE applicant filed this application for waiver of pre -deposit of duty of Rs. 2,15,167/ - along with interest and penalty. Heard both sides and perused the records.

(2.) THE issue involved in this case is as to whether the applicant is eligible to avail transfer of credit under Rule 10 of Cenvat Credit Rules, 2004 and whether they are required to reverse the Cenvat credit on the value of closing stock of raw materials and semi -finished goods. There is no dispute that on the date of transfer of the business, there was 'nil' balance only in the Cenvat account. Rule 10 of Cenvat Credit Rules, provides that if a manufacturer of final products shifts his factory or business, then the manufacturer shall be allowed to transfer the Cenvat credit lying unutilized in his accounts to such transferred, sold, merged, leased or amalgamated factory. In the present case, admittedly there was no unutilized balance lying in the Cenvat account. Therefore, in my considered opinion, prima facie, the reversal of the Cenvat credit on the value of closing stock of raw materials and semi -finished goods is not supported by Rule 10 of Cenvat Credit Rules.