TMI Blog2016 (11) TMI 1164X X X X Extracts X X X X X X X X Extracts X X X X ..... maceuticals 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... EOU. On behalf of the Department, the learned AR Shri Arun Kumar advanced his arguments relying upon the Circular No. 77/99-Cus dt. 18/11/1999. He submitted that as per this circular, the assessee is not eligible to avail MODVAT credit on capital goods or inputs which are lying unutilized in DTA units on the date of conversion of the unit into an EOU. 2. On behalf of the respondent, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ri. Chennai)]. 3. I have heard both sides. 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. (supra), the Tribunal has observed as under:- 7. In CCR'02, or CCR'04, there exist no provisions barring an EOU from availing cenvat credit of excise duty paid on inputs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2002 provides that existing DTA units may also apply for conversion into an, EOU/EHTP/STP but no concession in duties and taxes would be available under the scheme for plant, machinery and equipment already installed. In this connection, instances have 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 pl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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