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2023 (10) TMI 1086 - AT - Central ExciseTransfer of accumulated CENVAT Credit of the EOU Unit to the DTA Unit after exit of EOU status - HELD THAT:- As per Rule 10 if a manufacturer shifts the factory to another site or the factory is transferred on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the factory to a joint venture then the manufacturer is allowed to transfer the CENVAT credit lying un-utilised in its accounts to the Unit that is sold, merged, leased or amalgamated - In the present case, the Unit has become a DTA after exiting from EOU status. Under Central Excise law both these units are considered as separate entities. The accumulated credit cannot be denied to both the units and the department cannot recover such credit which belongs to the appellant. The issue stands covered by the decision in the case of TECUMSEH PRODUCTS INDIA P. LTD. VERSUS C.C.,C.E. & S.T., HYDERABAD-IV [2015 (9) TMI 1487 - CESTAT BANGALORE] where it was held that a successor DTA unit can get the transfer credit of the unutilized credit lying with its predecessor unit, which is an EOU in the present case. The demand cannot sustain and requires to be set aside. The impugned order is set aside - Appeal allowed.
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