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2016 (11) TMI 1164 - AT - Central ExciseMODVAT credit - credit lying unutilized in DTA units on the date of conversion of the unit into an EOU - Circular No. 77/99-Cus dt. 18/11/1999 - Held that: - The issue that poses for consideration is no longer res integra as pointed out by the learned counsel for the appellant. In the case of Sun Pharmaceuticals India Ltd. Vs. CCE, Pondicherry [2009 (5) TMI 849 - CESTAT CHENNAI], the Tribunal has held that It is clarified that if the DTA unit has availed of the modvat credit on plant, machinery and equipment and also utilized such credit for payment of duty on goods manufactured and cleared before its conversion into EOU/EHTP/STP, the same is not required to be demanded on its conversion into EOU/EHTP/STP. However, if the Modvat credit so availed of is lying in balance flux: as unutilized on the date of conversion into EOU/EHTP/STP, it would lapse on conversion of DTA unit into EOU/EHTP/STP unit and cannot be utilized after such conversion. Appeal dismissed - decided against Department.
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