TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether Cenvat credit on indigenous capital goods was admissible to a 100% EOU on debonding, and whether the demand could be sustained in view of the corrigendum to the show cause notice and the effect of the Board circular and later notification.
Analysis: The corrigendum was issued after the assessees had filed replies to the original show cause notices and substantially altered the basis of the notice; it was therefore not to be taken cognizance of. The finding of premature debonding was also rejected because the competent authority had granted extensions, and the relevant date for testing debonding had to be the extended date. On the merits, credit on indigenous capital goods at the time of debonding was held admissible to a 100% EOU in the light of the Board circular and the consistent line of decisions recognising such entitlement. The later notification was held not to defeat the assessees' entitlement in respect of debonding and credit availed before its issuance.
Conclusion: The denial of Cenvat credit was unsustainable and the demand could not be upheld; the issue was decided in favour of the assessee.
Ratio Decidendi: A 100% EOU is entitled to Cenvat credit on indigenous capital goods at the time of debonding where debonding occurs within the extended period sanctioned by the competent authority, and a post-reply corrigendum that materially alters the show cause notice cannot be relied upon to sustain the demand.
TaxTMI 
TaxTMI 
