SHREE CEMENT LIMITED, BEAWAR Vs. CCE, JAIPUR

JUDGEMENT

(1.) The appellants are manufacturers of cement. Their factory is located at Bangur Nagar, Beawar in the District of Ajmer (Rajasthan). Before the initiation of the proceedings leading to this appeal, there were two cement manufacturing units situate adjacently, one belonging to the present appellants namely M/s Shree Cement Limited and the other belonging to their sister concern namely M/s Raj Cement, and both were separately registered with the Central Excise Department. On 11.11.1998, M/s Shree Cement Limited took over Raj Cement and obtained a single registration for the merged units, with the department, effective from 11.11.1998. As on the date of merger of the two units, Modvat credits on inputs as well as capital goods were lying unutilised with M/s Raj Cement. Therefore, after the merger, the present appellants applied to the Departmental authorities for permission to transfer the balances of Modvat credits lying in the RG -23C accounts of M/s Raj Cement to the corresponding accounts of M/s Shree Cement Limited. The application in respect of the Modvat credit on inputs was allowed by the jurisdictional Assistant Commissioner. On the other hand, similar application in relation to capital goods credit was rejected by the jurisdictional Commissioner of Central Excise as per order dated 18.04.2000. The appellants are aggrieved by this order of the Commissioner.

(2.) I have carefully examined the records and have heard Id. JDR Shri S.C.Pushkarna for the respondents. There is no representation for the appellants. However, they have requested for a decision on merits. In their letter of requested for a decision on merits. In their letter of request, they have also submitted that the issue involved in this appeal stands settled in their favour by the decision of the Tribunal in the case of Orient Ceramics (P) Ltd Vs CCE, Meerut (2000 (40) RLT 582).

(3.) As per the impugned order, Id. Commissioner has declined permission for transfer of the capital goods credit lying in the RG -23C Pt.II account of M/s Raj Cement to like account of the present appellants namely M/s Shree Cement, on the ground that the appellants' case did not attract the provisions of Rule 57S (5) of the Central Excise Rules. Though the Commissioner took note of the fact that the jurisdictional Assistant Commissioner had sanctioned transfer of the balance credit on inputs lying in the RG -23A Pt.II account of Raj Cement of like account of the present appellants under the provisions of Rule 57F(20) of the Central Excise Rules, he refused to follow suit and maintained that the Assistant Commissioner's order was not binding on him.