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2012 (7) TMI 874 - CGOVT - Central ExciseDenial of rebate claim - Payment of duty from unutilized CENVAT Credit - whether the rebate of “duties” actually paid out of the unutilized cenvat credit lying in balance with 100% EOU at the time of conversion to DTA Unit, on the goods exported by applicant, can be granted under Rule 18 of Central Excise Rules, 2002 read with Notification No. 19/04-C.E. (N.T.), dated 6-9-2004 - Held that:- When statutory provisions of Rule 18 of the Central Excise Rules, 2002 read with Notification No. 19/2004-C.E. (N.T.), dated 6-9-2004 are read in proper perspective along with Instructions contained in Chapter 8 (Rule 8.4) of C. B. E. & C.’s Excise Manual of Supplementary Instructions then it becomes clear that rebate of duty paid at the time of clearance of export goods, is admissible. All the rebate claims under reference stands filed within the ambit and scope of above said provisions of law. In this case payment of duty is disputed as the same was paid from lapsed cenvat credit. The clarification by C.B.E. & C. Circular No. 77/99-Cus., dated 18-11-1999 (F. No. 305/128/99-FTT) is also applicable to instant case where 100% EOUs were converted into DTA Units. The CBEC Circular categorically states that cenvat credit lying in balance on the date of conversion would lapse and cannot be utilized after such conversion. Moreover, the Rule 10 of Cenvat Credit Rules, 2004 stipulates the situations where a manufacturer can transfer the unutilized cenvat credit to another unit. The said Rule does not permit transfer of unutilized cenvat credit lying in balance in case of conversion of an 100% EOU to DTA Unit. There is no statutory provision to allow transfer of such credit from 100% EOU to DTA Unit. As such it is rightly held by original authority that such credit has lapsed and cannot be utilized for payment of duty on goods exported by DTA Unit. - Decided in favour of Revenue.
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