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2014 (9) TMI 861 - AT - Central ExciseCENVAT Credit - Conversion of DTA into EOU - Held that:- EOUs are entitled to avail Cenvat credit w.e.f. 6-9-2004 in view of the provisions in the Notification No. 18/2004-C.E. (N.T.), dated 6-9-2004. Therefore the issue involved is when the factory was converted from DTA to 100% EOU, credit could have been transferred or not. If the EOU is also entitled to avail Cenvat credit, obviously the entire amount available as credit in the books could have been transferred. This is in view of the fact that according to Rule 10 of CCR, even when there is change in ownership on account of sale, merger, amalgamation, lease or transfer of the factory with the specific provisions for transfer of liability, the Cenvat credit lying unutilized can be transferred. The credit could have been utilized by the DTA unit if it remained to be a DTA without any restriction for payment of duty. Just because the unit got converted to 100% EOU which also became eligible for the Cenvat credit from 6-9-2004 i.e. prior to conversion of the DTA unit to 100%, EOU, credit, in my opinion, cannot be limited to the stock of inputs lying with the assessee. appellant has made out a case in their favour - Decided in favour of assessee.
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