fiogf49gjkf0d
Transfer of CENVAT credit on conversion of partnership firm to Pvt. Ltd. — Credit reversed on audit objection but re-credit taken — Whether permission is required to be taken under Rule 10 of the CENVAT Credit Rules, 2004.
Facts:
The partnership firm under the name and style as M/s. Sushmit Packaging was converted into a private limited company under the name of M/s. Flex Art Folio Pvt. Ltd. (the appellants in the case). The appellants took the credit in terms of the provision 10 of the CENVAT Credit Rules, 2004 and informed the Revenue. On an audit objection that credit could not be availed suo motu, the appellants reversed the credit taken. However, it was again taken on realising that no permission was required under the said rule. According to the appellant, it was not the case of suo motu refund in accordance with the Rule 10 of the said rules and relied on the decision in the case of Hewlett Packard (India) Sales Pvt. Ltd. v. Commissioner, 2007 (6) STR 155 (Tribunal). The Revenue contended that even if no permission was required under the said rules, admissibility of the credit on merit was not adjudged by the lower authorities.
Held:
It was held that the denial of credit on the ground that formal permission from the Central Excise Officers was not taken was not justified. However, the matter was remanded to the proper Central Excise Officer since the availability or otherwise of the credit on merits was not adjudged by the lower authorities.
