TMI Blog2018 (6) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... sence of provisions requiring the DTA unit to reverse the credit balance at the time of its conversion into an EOU, the credit it had validly earned as a manufacturer continued to be available without any limitation of time or otherwise - appeal allowed - decided in favor of appellant. - E/925/2008-DB, C/329/2010-DB - Final Order No. 20780-20781 / 2018 - Dated:- 31-5-2018 - HON'BLE MR. S.S GARG, JUDICIAL MEMBER And HON'BLE MR. P. ANJANI KUMAR, TECHNICAL MEMBER Mr. S.K. CHOUDHARY FOR THE APPELLANT MR. N. JAGADISH, AR FOR THE RESPONDENT ORDER Per : P. Anjani Kumar Appeal No. E/925/2008 was filed by M/s. Sun Electronics Technologies Ltd. and C/329/2010 filed by M/s.Mi2 Micro Systems Ltd. (formerly known as M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utilize the input credit lying unutilized on the date of their conversion from DTA to EOU on 1.12.2006. Both the orders appear to be based on the instructions contained in CBEC Circular No.77/1999-Cus. dated 18.11.1999. It was held that although the said circular specifically refers to plant, machinery and equipment, the underlying principle that the manufacturers have earned credit when they were DTA units cannot utilize the same after conversion of such units into EOU. The authorities further held that though there is change in the statute enabling EOUs eligible for taking CENVAT credit vide Notification No.18/2004-CE dated 6.9.2004, the original Circular No.77/1999 was either withdrawn or amended; therefore, it is still operational. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ands squarely covered and the same has been upheld by various Benches of the Tribunal. We find that Tribunal has been consistently holding that there was no provision prohibiting an EOU from availing balance of credit when the unit was converted into EOU from DTA; an EOU also manufacture goods for DTA clearances; in the absence of provisions requiring the DTA unit to reverse the credit balance at the time of its conversion into an EOU, the credit it had validly earned as a manufacturer continued to be available without any limitation of time or otherwise. 7. In view of the above discussions, both the appeals are allowed. ( Operative portion of the Order was pronounced in Open Court on 31/05/2018 ) - - TaxTMI - TMITax - Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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