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TMI Blog2017 (1) TMI 699X X X X Extracts X X X X X X X X Extracts X X X X ..... ailing credit on inputs, input services etc., till it got itself de-bonded on 16.5.2008. Upon conversion from 100% EOU into DTA unit, appropriate customs/excise duty on the inputs/capital goods/finished goods lying in stock was paid by the appellant in terms of the provisions of Foreign Trade Policy/Excise Law/Customs Law. After de-bonding of EOU to DTA unit, appellant cleared its goods manufactured out of the inputs lying in stock at the time of de-bonding without payment of excise duty under Notification No. 30/2004-CE dated 9.7.2004. The major inputs i.e. cotton, coal and furnace oil, were procured by the appellant availing Cenvat credit of inward GTA services, for manufacture of its finished goods. By Notification No. 30/2004-CE dated 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of Rule 6(1) of the Credit Rules. It is the contention of the department that the appellant violated the provisions of Rule 6(1) of the Credit Rules, inasmuch as the final products were exempted on 16.5.2008, by Notification No. 30/2004, and the appellant failed to reverse proportionate credit on inward GTA services availed for procuring inputs before de-bonding i.e. 16.5.2008, but inputs used subsequently in finished goods were cleared after 16.5.2008, without payment of excise duty under exemption Notification No. 30/2004 and the appellant failed to reverse proportionate credit on inward GTA services availed for procuring inputs before de-bonding i.e. 16.5.2008, but inputs used subsequently in finished goods cleared after 16.5.2008, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was as 100% EOU and was discharging the duty on the goods manufactured and cleared by them. Hence in terms of Rule 6(1) the credit availed on input services is in order. At the time of debonding from the 100% EOU scheme, the appellant has already reversed an amount equal to the credit availed in respect of inputs and capital goods which were transferred to the DTA unit as per the provisions of Cenvat Credit Rules. There is no provision for reversal of Cenvat credit availed on input services at the time of debonding, inasmuch as the input services stand consumed, as soon as it was received. I have already held that the Cenvat credit on such input services stand availed properly on the date of receipt of the service. Hence there is no obligat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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