Dear All,
While debonding from EOU, we need to pay the customs duty/Excise duty on the closing stock. for paying the excise duty can we utilise the cenvat/service tax credit accumulated by the EOU unit. pl. provide me the details with rulings in Cenvat & central excise rules.
Cenvat Credit Can't Pay Duty on EOU Debonding Stock; Use for DTA Clearances or Refunds Instead, per Rule 17(1). An individual inquired about utilizing accumulated Cenvat/service tax credit to pay excise duty on closing stock during the debonding of an Export Oriented Unit (EOU). A respondent clarified that while accumulated Cenvat credit cannot be used for paying duty on closing stock during debonding, it can be used for payment on Domestic Tariff Area (DTA) clearances or claimed as a refund. The discussion referenced relevant rules and regulations, including Rule 17(1) of the Central Excise Rule, 2002, and a Board's circular from 2004, which outline the conditions under which EOUs can utilize Cenvat credit. (AI Summary)
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