Shree Products Vs. Collector of Central Excise

.....with the registrar of companies on 19-2-1993 and as per the provisions of companies act, 19-2-1993 is the effective date of amalgamation. it is alleged by the department that the balance lying in the rg 23a part ii could not have been utilised by the unit after amalgamation without applying for transfer of credit in terms of rule 57h and the applicants should not have received inputs and availed modvat credit without filing a fresh declaration under rule 57g of the central excise rules after amalgamation. shree products ltd. are the manufacturers and they have filed declaration under rule 57g of the central excise rules. there was no interruption in production. it was a going concern which was amalgamated. the terms of amalgamation clearly indicate that the rights and liabilities are taken over. on a perusal of the rule 57g of the central excise rules, prima facie, we find that the requirement stipulated is that a declaration has to be filed by the manufacturer. in this case [shree] products ltd. being the manufacturer has already filed a declaration and the very same manufacturer has got amalgamated with the activities going on and even after amalgamation, the liability incurred by shree products ltd. continued to vest with the amalgamated company and so also the rights have accrued. in the context of the aforesaid factual position remaining undisputed, it appears that denial of modvat credit on the ground of non- filing of fresh declaration and also refusal of transfer of credit do no prima facie appeal to us. we, therefore, grant stay against recovery and waiver of pre-deposit of the duty amount, on the applicants furnishing a personal bond covering the duty amount.