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2016 (6) TMI 827 - AT - Central ExciseConversion of DTA unit into 100% EOU - reversal fo Cenvat Credit attributable to the capital goods and inputs transferred to their 100% EOU within the factory premises or otherwise. - Held that:- inputs and capital goods were within the factory premises of the appellant even after carving out of the EOU by them. Provisions of rule 3(4) of the Cenvat Credit Rules are attracted only when the MODVAT/CENVAT Credit availed inputs or capital goods are removed from the factory premises is undisputed. The adjudicating authority has held that through two different legal entities and two different registrations have been given, one as a DTA and other as a 100% EOU, hence it should be considered as removal of capital goods and inputs. We do not agree to this proposition as it is undisputed that the EOU is also named as Behr India Ltd. (100% EOU) and Balance-sheet of the appellant is one and the same though the legal status of the EOU is bit different than the DTA, it cannot be said that both are separate units. In our view this observation of the adjudicating authority cannot withstand scrutiny of the law - appellant has made out a case in his favour - Demand set aside - Decided in favor of assessee.
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