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2016 (10) TMI 305 - AT - Central ExciseConversion of DTA unit to EOU - reversal of cenvat credit u/r 3(5) of Cenvat Credit Rules, 2004 - inputs, consumables, work-in-progress on the day of conversion - goods having not manufactured or used in DTA unit and the same also could not have been procured under CT-3 certificate in terms of Notification No. 22/2003 - whether demand of duty and penalty justified on the ground that upon conversion of DTA to EOU the goods lying in that portion of converted unit would amount to removal of these goods and thereby attract the reversal of credit in terms of Rule 3(5) of Cenvat Credit Rules, 2004? - Reference made to the case of Privi Organics Ltd. vs. CCE, Raigad [2015 (10) TMI 287 - CESTAT MUMBAI]. Held that: - A part of DTA unit was converted to EOU and as such there is no evidence of any physical removal of any of the credit availed items as held in the appellant's own case [2016 (8) TMI 346 - CESTAT NEW DELHI] and the issue was decided in favor of appellant. The decision of the case Privi Organics Ltd. not applicable to the present case as during that time the 100% EOU were outside the credit scheme. Credit available on conversion - demand of duty and penalty not justified - appeal allowed - decided in favor of appellant.
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