2014 (11) TMI 307

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.... Excise Commissionerate as an 100% EOU for manufacture of Carbon Brushes falling under Chapter Heading 8545 2000 of Central Excise Tariff Act. Subsequently they surrendered EOU status on 23.02.2012 and became a DTA unit. At the time of de-bonding, the appellants had paid full appropriate duty on the imported/indigenous non-duty paid raw materials and capital goods lying in stock. After issue of final exit order by the Development Commissioner on 23.02.2012, the applicant has availed cenvat credit on the duty paid stocks of inputs and on the capital goods. A Show Cause Notice dated 23.05.13 was issued to the applicant for recovery of wrong availment of cenvat credit of Rs. 1,49,33,553/- in contravention of Rule 3 and Rule 9 of Cenvat Credit ....

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....vidence of duty paying documents. He also submits that the department had accepted the fact of payment of duty at the time of de-bonding and issued no objection certificate and the same unit has become DTA unit and continued to carry out the manufacturing activity in the same premises, therefore, they are eligible for cenvat credit on the duty paid inputs and capital goods. If the capital goods or inputs whether imported or indigenous or procured from domestic market, they are eligible for cenvat credit. He relied upon the following decisions by the Tribunal in support of his contention:-        1. Krebs Biochemicals Ltd. Vs. CCE, Guntur 2001 (138) ELT 353 (Tri.- Chen.)       &nbs....