https://www.taxtmi.com/caselaws?id=329118 MODVAT/CENVAT credit on capital goods and inputs need not be reversed where part of a manufacturing unit is converted into a 100% EOU within the same factory premises. Such internal segregation does not constitute removal under Rule 3(4) of the Cenvat Credit Rules, 2002, where the EOU remains within the premises, operates under the same name, and no goods are physically transferred to a distinct external unit. The arrangement is revenue-neutral because any reversed credit would be available to the EOU. Transfers involving an actual sale or physical removal to another entity are distinguishable. Consequently, demand, interest, and penalties are unsustainable. en-us Tue, 10 May 2016 00:00:00 +0530 Wed, 21 Dec 2016 16:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=329118 MODVAT/CENVAT credit on capital goods and inputs need not be reversed where part of a manufacturing unit is converted into a 100% EOU within the same factory premises. Such internal segregation does not constitute removal under Rule 3(4) of the Cenvat Credit Rules, 2002, where the EOU remains within the premises, operates under the same name, and no goods are physically transferred to a distinct external unit. The arrangement is revenue-neutral because any reversed credit would be available to the EOU. Transfers involving an actual sale or physical removal to another entity are distinguishable. Consequently, demand, interest, and penalties are unsustainable. Case-Laws Central Excise Tue, 10 May 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=329118