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TMI Blog2018 (4) TMI 590X X X X Extracts X X X X X X X X Extracts X X X X ..... orward unutilized CENVAT credit it cannot be held against the assessee - appeal dismissed - decided against Revenue. - APPEAL No: E/85584/2017 - A/85666 / 2018 - Dated:- 12-3-2018 - Shri M V Ravindran, Member (Judicial) Shri S.J. Sahu; Assistant Commissioner (AR) for appellant Shri PK Shetty, Advocate for respondent This appeal is filed by Revenue against Order-in-Appeal No: SK/48/TH-1/2016 dated 24/11/2016 passed by Commissioner of Central Excise (Appeals), Mumbai - I. 2. Heard both sides and perused the records. 3. The relevant facts that arise for consideration are, respondent herein was a 1000/0 EOU and was availing CENVAT credit of the service tax and Central Excise duty till 18/11/2011 and was holding Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y) under Section 35EE of Central Excise Act, 1944 in the case of Technocraft Industries (India) Ltd. v. Before the Government of India, Ministry of Finance [2014 (313) ELT 888 (Gol)] has specifically stated that a manufacturer EOU, after debonding, cannot carry forward unutilized credit. 5. Learned Counsel submits that an identical issue come up before the Division Bench of the Tribunal in the case of Tecumseh Products India P. Ltd. v Commissioner of Central Excise [2016 (336) ELT 685 (Tri.Bang.)] and the bench held that the there being no law prohibiting carrying forward unutilized CENVAT credit it cannot be held against the assessee. 6. I find that the fact in the case is not disputed. The only issue is whether the unutilized CENVAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 would be entitled to take ..... X X X X Extracts X X X X X X X X Extracts X X X X
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