2013 (10) TMI 145 - HC - Central Excise

Reversal of CENVAT Credit DTA unit converted into 100% EOU Conversion and Utilization of Credit Whether the CESTAT was justified in holding that the assessee, a DTA unit converted into a 100% Export Oriented Unit with effect from 14-7-2004 was not required to reverse the balance CENVAT credit available in the books of accounts of the assessee on the date of conversion and utilize the said credit in respect of the clearances effected from the 100% Export Oriented Unit is the question of law - Held that - Following GTN Exports Ltd. v. Commissioner of Central Excise, Coimbatore 2008 (7) TMI 377 - CESTAT, CHENNAI and Commissioner of Central Excise, Rajkot v. Ashok Iron & Steel Fabricators 2002 (1) TMI 91 - CEGAT, NEW DELHI the assessee is entitled to avail the credit in balance as on the date of conversion - there was no fault can be found with the decision of the CESTAT Appeal was dismissed.

Summary

The Bombay High Court upheld the CESTAT decision that a DTA unit converted into a 100% Export Oriented Unit was not required to reverse the balance CENVAT credit on the date of conversion. The Tribunal's decision was supported by previous cases, and the appeal was dismissed with no costs.