TMI BlogUnutilised cenvat credit on CG after DTA to EOU conversionX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear All, We have converted our exising DTA unit into EOU. We have unutilised cenvat credit on capital goods lying with us on the date of DTA to EOU conversion, my query is that whether we can utilize this unutilised credit after conversion for payment of Excise duty on DTA sales. Rahul Sonawane - Reply By vijay kumar - The Reply = Rule 10 of Cenvat Credit Rule, 2004 specify t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat - 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 unutilize ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in his accounts to such transferred, sold, merged, leased or amalgamated factory.". If your case falls in any of these categories, the credit can be transferred,subject to fulfilment of Rule 10(3) . If not, it shall be a case of Rule 3(5) ibid whereby used capital goods on which credit has been taken have to be removed on payment of duty after allowing for proportionate depreciation. If it co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mes to 100% depreciation, then the case would be covered under Rule 3(5A) ibid. The duty paid in the DTA can be availed as credit by EOU and can be utilized for payment on DTA sales by the EOU. - Reply By Alok Kumar - The Reply = Dear Mr. Rahul , I personally feel you have converted yoru existing unit into an EOU , without changing your present location. If that is the case then the cal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cultaion of duties of excise and customs will be altogether different . Please clarify your position so that i can give you some feedback on the issue thanks, alok kumar - Reply By Rahul Sonawane - The Reply = Dear Mr.Alok Sir, Our Present location is same. - Reply By Alok Kumar - The Reply = Dear Mr Rahul, In view of the existing FTP/ FT Procedures you will not be able to to cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im cenvat credit availed on capital goods as lying in your records on the date of conversion and the same will lapse and cannot be utilsed by you. The CBEC has already clarified this view in one of its circular . you query is being replied accordingly. thanks, alok kumar - Unutilised cenvat credit on CG after DTA to EOU conversion - Query Started By: - Rahul Sonawane Dated:- 7- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12-2011 Central Excise - Got 4 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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