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2023 (6) TMI 237 - AT - Central ExciseTransfer of Credit - Merger of two units - transfer of CENVAT credit which was lying in Plant – I, which was earlier an EOU unit to their merged DTA unit - Department alleged that as there is no transfer of capital goods / inputs as required under the sub-rule (3) of Rule 10 and the CENVAT credit lying unutilized in the accounts of the earlier EOU cannot be transferred to the merged DTA Unit - Rule 10 of CENVAT Credit Rules, 2004 - HELD THAT:- There are nothing in Rule 10 which disallows transfer of CENVAT credit in the manner alleged by department. So also there is no dispute that the credit availed by the EOU which has been transferred is ineligible. The very same issue was considered by the Tribunal in the case of Technocraft Industries [2018 (12) TMI 8 - CESTAT MUMBAI] where it was held that denial of carry forward of accumulated Cenvat credit to assessees debonding from the ‘100% Exported Oriented Unit’ scheme to continue operations without the privileges is not correct in law and is set aside. In the case of Sun Pharmaceuticals [2009 (5) TMI 849 - CESTAT CHENNAI], the Tribunal held that at the material time the CER or CCR did not contain any provision barring the 100% EOUs from availing cenvat credit or utilizing the same for payment of duty on excisable goods removed to the DTA or for payment of duty on goods exported under claim for rebate. Also there exists no bar for a DTA unit carrying over inputs and the cenvat credit balance in its accounts when it got converted into an EOU. Following the ratio laid down by the judgments above, which is squarely applicable to the facts of the case, it is held that the demand cannot sustain. The impugned order is set aside - appeal allowed.
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