A service provider shift his business from Mumbai to Delhi ( OR WITHIN MUMBAI CHANGE OF ADDRESS ) ( there is no sale, transfer merger or change of ownership of business ) , is require permission of A/c or D/c FOR TRANSFER OF SUCH CENVAT CREDIT
++ Rule 10 deals with the Transfer of CENVAT credit and states � (1) If a manufacturer of the final products shifts his factory to another site or the factory is transferred on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the factory to a joint venture with the specific provision for transfer of liabilities of such factory, 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. (2) If a provider of output service shifts or transfers his business on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the business to a joint venture with the specific provision for transfer of liabilities of such business, then, the provider of output service shall be allowed to transfer the CENVAT credit lying unutilized in his accounts to such transferred, sold, merged, leased or amalgamated business. (3) The transfer of the CENVAT credit under sub-rules (1) and (2) shall be allowed only if the stock of inputs as such or in process, or the capital goods is also transferred along with the factory or business premises to the new site or ownership and the inputs, or capital goods, on which credit has been availed of are duly accounted for to the satisfaction of the Deputy Commissioner of Central Excise or, as the case may be, the Assistant Commissioner of Central Excise.
07 November 2013
The answer is clear in the question itself where you have quoted Rule 10 of CENVAT Credit Rules.
Under Central Excise Act any transfer of the manufacturing premises results in a new assessee with a different regn no. Hence even if a manufacturer transfers his factory to another site without change of ownership the availing of unutilized credit in the new premises is subject to the satisfaction of the DC / AC.
In the case of an output service provider there should be a transfer of ownership and status for the rule to apply. Mere transfer of premises would not require all the formalities, except intimation to both the old and new DC / AC for smooth functioning.
12 November 2013
There are no case laws on this subject. The Departmental instructions to the field formations have clarified that in Service Tax, unless there is a change of status or ownership, no action need be taken. However, whenever there is a shift of jurisdiction, the existing Range Superintendent & Divisional AC/DC should be intimated of the change of premises so that the returns in future can be made in the correct jurisdiction. A copy of the letter asking for transfer of files should be filed with the new jurisdictional Commissioner & Divisional AC/DC. Thereafter, the assessee can start filing the return with the new address.
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