TaxTMI 
TaxTMI 
Sir, We are closing one EOU Unit by debonding everything.
We have some accumulated Cenvat Credit.
Query: Can we adjust this cenvat credit and pay the balance duty, also provide some case law if any
Cenvat cr - EOU Unit by debonding
28 Mar 2015 
2 Replies 
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Cenvat credit utilization allowed for EOU debonding to meet duty on DTA clearances or claim refund.
Accumulated Cenvat Credit of an EOU being debonded can be adjusted against duty on DTA clearances or claimed as a refund; reliance is placed on Rule 17(1) of the Central Excise Rules, Rule 5 of the Cenvat Credit Rules, 2004, Board circular no. 799/32/2004-CX and Notification No. 18/2004-CE (N.T.) recognizing EOUs' entitlement to the Cenvat Credit scheme. (AI Summary)
Accumulated Cenvat Credit of an EOU being debonded can be adjusted against duty on DTA clearances or claimed as a refund; reliance is placed on Rule 17(1) of the Central Excise Rules, Rule 5 of the Cenvat Credit Rules, 2004, Board circular no. 799/32/2004-CX and Notification No. 18/2004-CE (N.T.) recognizing EOUs' entitlement to the Cenvat Credit scheme. (AI Summary)