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2016 (8) TMI 1062 - CESTAT BANGALORE

2016 (8) TMI 1062 - CESTAT BANGALORE - TMI - Whether on conversion of DTA unit into a 100% EOU, the CENVAT credit lying as balance at the time of conversion can be availed and utilized by the 100% EOU or not - Held that:- in view of the various judgments which squarely covers the case of the appellant and this Tribunal has consistently held that the appellant is entitled to transfer the unutilized CENVAT credit on conversion from DTA to 100% EOU. therefore, in view of the settled position of law .....

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al was upheld. Briefly the facts of the present case are that the appellant is a 100% Export Oriented Unit (EOU) engaged in the manufacture of parts and accessories for ATM machine classifiable under Chapter Heading 84 of Central Excise Tariff Act, 1984. Earlier the appellant had obtained Central Excise registration as a Domestic Tariff Area (DTA) unit and on 25.8.2010 appellant converted their DTA unit into a 100% EOU vide letter of permission dated 16.2.2010 issued by the Development Commissio .....

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ming the demand and the appeal of the appellant was also rejected by the Commissioner (A) by the impugned order and hence the present appeal. 2. Heard both the parties and perused the records. 3. The issue involved in the present appeal is whether on conversion of DTA unit into a 100% EOU, the CENVAT credit lying as balance at the time of conversion can be availed and utilized by the 100% EOU or not. Learned counsel for the appellant submitted that the issue involved in the present case is no mo .....

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CE, Belapur vs. Sandoz Pvt. Ltd. as reported in 2013 (291) E.L.T. 325 (Bom.). Learned counsel further submitted that there is no provision under the CENVAT Credit Rules, which provides lapsing of CENVAT Credit on conversion of DTA unit to 100% EOU. He further submitted that as per new scheme even 100% EOU can procure the goods on payment of duty and avail the CENVAT credit. Thus the 100% EOU are not debarred from availing the CENVAT credit and under any circumstances they cannot be denied the un .....

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1-CESTAT-Ahmedabad * CCE, Vapi vs. Raveshia Colours Pvt. Ltd.: 2013 (292) E.L.T. 96 (Tri.-Ahmd.) * Behr India Ltd. vs. CCE, Pune: 2016 (6) TMI 827 CESTAT-Mumbai * Lupin Ltd. vs. CCE, Bhopal : 2016 (8) TMI-CESTAT New Delhi 3.1 In the case of Sun Pharmaceuticals Ltd. cited supra, the appellant therein was the manufacturers of Pharmaceuticals Products and Bulk Drugs and availed CENVAT credit on various inputs during their operation as DTA unit. On conversion to 100% EOU, the appellant availed the c .....

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it received. Rule 100H of CER-44 made various rules including Rule 57A to Rule 57U of CER-44 inapplicable to an EOU. CER-44 have been rescinded. There is also no corresponding rule/provision in CCR-01 or CCR-02. CER-01 and CER-02 contain transitional provisions to the effect that any circulars, instructions, orders, trading notices or other orders issued under the CER-44 superseded by CER-01, or such orders etc., issued under CER-01 superseded by CER-02, by the Board, and in force on the date t .....

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come to the notice of the Board that such units on their conversion into EOUs have been asked to reverse the Modvat Credit already availed of, on plant and machinery procured by them prior to their conversion into EOUs. The matter has been examined. 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 requir .....

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s to be held to be no longer in force, in view of the transitional provisions contained in Rule 32 of CER, 2001. 3.2 Similarly, this Tribunal in the case of Water Base Ltd. vs. CCE, Guntur reported in 2005 (187) E.L.T. 346 (Tri.-Bang.) has made the following observations. 6. We have gone through the rival contentions. The appellants have informed their intention of taking Cenvat Credit. The Department acknowledged the intimation sent by the appellants. In these circumstances, the appellants star .....

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