The action of the Chief Commissioner to refuse to accept new units as a part of LTU and issuing show cause notice to them regarding transfer of Cenvat credit not tenable under LTU scheme

Sharda Motor Industries Ltd vs 5 The Deputy Commissioner on 17 February, 2011  (Mumbai High Court) The unit in question is situated at Nashik, Maharashtra within the jurisdiction of this Court. The said unit was initially administered by the LTU at Delhi and it is only as an afterthought the revenue is contending that the unit in question would not be governed by the LTU scheme for the period where there was no specific approval. If mere forwarding of the consent letter entitles the large tax payer to avail the benefits of the LTU scheme then the benefits of the LTU cannot be denied where the...