2011 (3) TMI 632

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....mation of the above demand has arisen on the ground that the appellant had availed ineligible cenvat credit. It is the finding of the lower authorities that the cenvat credit lying unutilized in the accounts of de-bonded 100% EOU is transferred to their DTA unit and the duty paid on the de-bonding is not eligible to the assessee as per the existing provisions of Cenvat Credit Rules, 2004. 3. Ld. Counsel appearing on behalf of the applicant would draw our attention to the Order-in-original. It is his submission that the appellant-company was a 100% EOU of the same name having a DTA unit within the very same premises. After de-bonding of the EOU, the appellant had paid the Central Excise duty/Customs duty on the duty free inputs and cap....

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....ing into EOU and availing cenvat credit. 4. Ld. SDR would submit that in this case, there is no merger or amalgamation as per the Company's Act. It is her submission that both the units are separate entities, one 100% EOU and other DTA. Transfer of credit in respect of 100% EOU after being de-bonded cannot be permitted into DTA as there is no provision. It is her submission that there is no evidence to show that the 100% EOU had manufactured dutiable goods. It is her submission that the EOU cannot have availed the cenvat credit as the goods manufactured by them, if exported, are not liable to duty. It is her submission that there is no definition in the Central Excise Act as regards the same entity and how these units are same entity ....