Admissibility of un-utilized cenvat credit of DTA unit converted into EOU

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....-utilized cenvat credit of DTA unit converted into EOU - reg. Attention of all Exporters / Clearing Agents / Steamer Agents/Shipping agents/ Trade and Industry and Public is invited to Circular No. 77/99-Cus dt. 18.11,99 which provided for lapse of unutilized balance modvat credit on conversion of DTA unit into EOU/EHTP/STP unit. 2. Representations have been received that consequent to extensi....

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....y an EOU. Rule 10 of Cenvat credit Rule'2004 provides in unambiguous terms that if manufacturer transfers his factory on account-of change in ownership or lease, then the manufacturer shall be allowed to transfer the Cenvat credit lying unutilized in his accounts to transferred entity. EOU is a manufacturer, and hence this rule applies to them. Hence on conversion from a DTA unit to EOU, the t....