Cenvat credit transfer on DTA to EOU conversion now permitted, allowing unutilized credit to be used by the converted unit. Conversion of a DTA unit into an EOU allows transfer and use of unutilized Cenvat credit. Amendments to rules governing removals by EOUs and the provision permitting transfer of unutilized credit on change of ownership apply to EOUs as manufacturers; therefore unutilized credit in the books of a DTA unit on conversion is admissible and the prior circular requiring lapse is withdrawn.
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Provisions expressly mentioned in the judgment/order text.
Cenvat credit transfer on DTA to EOU conversion now permitted, allowing unutilized credit to be used by the converted unit.
Conversion of a DTA unit into an EOU allows transfer and use of unutilized Cenvat credit. Amendments to rules governing removals by EOUs and the provision permitting transfer of unutilized credit on change of ownership apply to EOUs as manufacturers; therefore unutilized credit in the books of a DTA unit on conversion is admissible and the prior circular requiring lapse is withdrawn.
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