Cenvat credit allowed for duty payment on EOU debonded goods.

Petitioners permitted to utilize Cenvat credit for payment of excise duty on goods lying at manufacturing plant proposed for debonding from Export Oriented Unit (EOU) scheme instead of cash payment. Relying on SC judgment in Eicher Motors Ltd. allowing utilization of accumulated Cenvat credit and HC judgment in Shilpa Copper Wire Industries equating EOUs with DTA units for Cenvat scheme. Section 142(6)(a) of GST Act also allows refund of outstanding credit in cash. Respondents' demand for cash payment rejected as legitimately availed Cenvat credit can be used for duty payment. Petition allowed as similarly situated assessees permitted to pay duty from Cenvat credit account. .....

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