Transfer of CENVAT Credit from EOU to DTA unit upon de-bonding permissible. Appeal allowed with consequential relief.

The Tribunal allowed the appeal, holding that the transfer of CENVAT Credit balance from the 100% EOU to the DTA unit upon de-bonding is permissible, citing relevant precedents. The impugned order was set aside, granting consequential relief to the Appellant in accordance with the law.

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Issues:
Transfer of CENVAT Credit from 100% EOU to DTA unit upon de-bonding.

Analysis:
The appeal was filed against OIO No.07/ANS-07/Jubilant/Th-I/2012, passed by the CCE, Thane-I. The Appellants were initially a 100% EOU and later opted to become a DTA unit. Upon de-bonding on 18.12.2011, the Appellant had CENVAT Credit balance of Rs. 1,23,82,459/-, with Rs. 2,84,635/- utilized for clearances. A Show Cause Notice was issued for recovery of the remaining credit, leading to the present appeal.

The Appellant argued that post-conversion to a DTA unit, retaining the same Central Excise registration should allow the transfer of the CENVAT Credit balance. Citing relevant judgments, the Appellant contended that the issue of admissibility of such credit upon conversion is well-established. The Revenue supported the findings of the learned Commissioner (Appeals).

After considering both sides and reviewing the records, the Tribunal focused on whether the CENVAT Credit balance from the 100% EOU could be transferred to the DTA unit upon de-bonding. Relying on previous judgments like Technocraft Industries (India) Ltd, Tecumseh Products India P.Ltd, John Deere India Pvt. Ltd, and CCE, Thane-I Vs Sequent Scientific Ltd, the Tribunal held that such credit transfer is permissible. The Tribunal found the impugned order to be against established precedents and set it aside, allowing the appeal with consequential relief as per law.

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