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TMI Blog2015 (9) TMI 1487X X X X Extracts X X X X X X X X Extracts X X X X ..... - Held that: - In this case CESTAT allowed an EOU to take the credit of its predecessor domestic tariff area unit (DTA unit) citing that Rule 10 of Cenvat Credit Rules did not prohibit availment of such credit at the time of conversion of DTA to EOU. By applying the same rational we are unable to understand how the department would prohibit an EOU, when it is converting itself to a DTA scheme, to take the credit of the balance credit lying with the predecessor EOU. There is no logic and rational in` the department’s contention that Rule 10 of Cenvat Credit Rules, 2004 does not cover such a situation. The CESTAT Chennai’s decision in GTN Exports is very clear that Rule 10 of Cenvat Credit Rules did not prohibit availment of balance credit b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise of the jurisdictional area asked the appellant to pay duties of ₹ 75,78,974/- (Rupees Seventy Five Lakhs Seventy Eight Thousand Nine Hundred and Seventy Four only) in case of capital goods, computer workstation, gauges and tools and duty of ₹ 35,06,864/- (Rupees Thirty Five Lakhs Six Thousand Eight Hundred and Sixty Four only) for indigenous capital goods and raw materials. The appellant states that they had paid the duty of ₹ 75,78,974/- (Rupees Seventy Five Lakhs Seventy Eight Thousand Nine Hundred and Seventy Four only) vide TR 6 challan dated 24-11-2007 on all excisable goods manufactured and remaining in the factory. It was also informed by the appellant that they reversed duties of indigenous capital goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ery of Cenvat credit of ₹ 1,91,10,912/- (Rupees One Crore Ninety One Lakhs Ten Thousand Nine Hundred and Twelve only) which was taken by the appellant by way of transfer from the de-bonded EOU unit. In this case Commissioner passed the order-in-original dated 28-12-2009 confirming the demand of duty of ₹ 1,91,10,912/- (Rupees One Crore Ninety One Lakhs Ten Thousand Nine Hundred and Twelve only) along with interest and imposed penalty of ₹ 19,00,000/- (Rupees Nineteen Lakhs only). 3.1 The appellant has come in appeal before this Tribunal mainly arguing that : (i) The impugned order is silent under which provision the unutilized credit in the EOU unit would lapse on de-bonding of EOU unit and argues that there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) Kellner Pharmaceuticals Ltd. v. CCE - 1985 (20) E.L.T. 80 (c) Tamil Nadu Housing Board v. CCE - 1994 (74) E.L.T. 9 (S.C.) 4. The learned DR on behalf of the respondent mainly argues that this transfer of credit is not covered by the provisions of Rule 10 and states that the appellant made false representation to the jurisdictional Assistant Commissioner for transfer of the said Cenvat credit under provisions of Rule 10 ibid which were not applicable to them and also further states that the appellant is liable for penalty under Rule 15(1) of Cenvat Credit Rules, 2004 for false representation and for wrong availment of Cenvat credit. 5. All the facts and the submissions of both the sides have been carefully considered. The d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing that Rule 10 of Cenvat Credit Rules did not prohibit availment of such credit at the time of conversion of DTA to EOU. By applying the same rational we are unable to understand how the department would prohibit an EOU, when it is converting itself to a DTA scheme, to take the credit of the balance credit lying with the predecessor EOU. There is no logic and rational in` the department s contention that Rule 10 of Cenvat Credit Rules, 2004 does not cover such a situation. The CESTAT Chennai s decision in GTN Exports (supra) is very clear that Rule 10 of Cenvat Credit Rules did not prohibit availment of balance credit by an EOU at the time of its conversion to EOU from the DTA; by the same logic an EOU when it is converted to DTA unit wou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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