HINDUSTAN LEVER LTD Vs. COMMISSIONER OF CENTRAL

JUDGEMENT

(1.) The appellant is a company engaged in the manufacture of soaps and took over by amalgamation Tata Oil Mills Co. Ltd by order of amalgamation of the High Court dated 18.5.94.

(2.) On 28.12.91., there were certain quantities of minor vegetable oils in stock, for which amount of money credit was Rs. 112470/ - while balance in the RG 23B II was Rs. 1,81,858/ -. The Asst. Commissioner, Calicut allowed a credit of Rs. 1,12,470/ - representing money credit available under chapter V -AAA of the Central Excise Rule 1944. Vide notification no. 34/95 CE(NT) dated 16.8.95 Rule 57N was amended to provide for transfer of unutilized credit in RG23B accounts whenever there was a change in ownership or site of a factory resulting from sale, merger, amalgamation or transfer to a joint venture. The appellant submitted an application under Rule 57N (3) seeking permission of Commissioner of Central Excise, Cochin for transfer of unutilised money credit on amalgamation. the present appeal has been filed against the rejection letter Commissioner which read as under:

(3.) It is also observed that on the date of amalgamation i.e 28.12.94, there was no provision under the Central Excise Rules, 1944, to allow transfer of unutilised money credit availed under Rule 57 K ibid.