Custom, Excise & Service Tax Tribunal
Component Speciality India Pvt Ltd vs Bangalore-I on 23 September, 2024
Excise Appeal No. 27720 of 2013
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL
BANGALORE
REGIONAL BENCH - COURT NO. 2
Excise Appeal No. 27720 of 2013
(Arising out of Order-in-Original No. 41/2013 dated 20.06.2013
passed by the Commissioner of Central Excise, Bangalore - I
Commissionerate)
M/s. Component Speciality
India (P) Ltd.
No. 32F, Veerasandra Industrial Appellant(s)
Area, Hosur Road,
Bangalore - 560 100
VERSUS
Commissioner of Central Excise,
Customs and Service Tax,
Bangalore-I Respondent(s)
Post Box No. 5400, C.R Buildings Bangalore - 560 001 APPEARANCE:
Mr. Cherian Punnoose, Advocate for the Appellant Mr. K. Vishwanatha, AR for the Respondent Coram:
Hon'ble P.A. Augustian, Member (Judicial) Hon'ble Mr. Pullela Nageswara Rao, Member (Technical) Final Order No. 20901 / 2024 DATE OF HEARING: 23.09.2024 DATE OF DECISION: 23.09.2024 Per : P.A. Augustian The issue involved in the present appeal is whether on conversion of the EOU unit to DTA, the CENVAT credit available as balance at the time of conversion can be transferred and utilized by DTA. The appellant was functioning as an EOU unit during the year from 2002-2011. In 2010 Page 1 of 3 Excise Appeal No. 27720 of 2013 they opted to exit out of EOU scheme and applied for permission for debonding to Cochin Special Economic Zone, Bangalore and they were permitted by the Development Commissioner, Cochin Special Economic Zone for final debonding of their 100% EOU subject to certain conditions specified. No objection certificate from Customs was issued on June 2011.
2. While functioning as 100% EOU, they have accumulated CENVAT credit and consequent to conversion of the said unit from EOU to DTA they had sought permission from Assistant Commissioner for transfer and utilization of said credit. However, adjudication authority as per the impugned order denied the same on the ground that law does not provide for any exclusion or prohibition to carry forward the accumulated credit when DTA is converted into EOU or an EOU unit is converted into DTA. Thus, adjudication authority directed recovery of irregular CENVAT credit availed by the appellant with interest and also imposed penalty. Aggrieved by said order, an appeal is filed before this Tribunal.
3. When the matter came up for hearing, learned counsel for the appellant submits that the issue involved in the present matter is no more res integra as is covered by various decisions of the Tribunal and same have been accepted by the Department. The learned counsel relied on the following decisions in support of the same:
a. Jubilant Life Sciences Ltd. Vs. CCE, Thane-l - 2019 (10) TMI 580 - CESTAT Mumbai b. Super Auto Forge Ltd. Vs. CGST & Central Excise, Pune -
2023 (10) TMI 1086-CESTAT Chennai Page 2 of 3 Excise Appeal No. 27720 of 2013 c. Tecumseh Products India P. Ltd. Vs. C.C, C.E & ST, Hyderabad - 2016 (336) E.L.T. 685 (Tri.-Bang.) d. Technocraft Industries (India) Ltd. Vs. CCE, Thane - 2018 (12) TMI 8-CESTAT Mumbai e. Wipro Ltd. Vs. CGST & Central Excise, Chennai - 2023 (6) TMI 237-CESTAT Chennai f. Avo Carbon India Pvt. Ltd. Vs. CCGST & Central Excise, Chennai - 2024 (8) TMI 1205-CESTAT Chennai g. GTN Exports Ltd. Vs. CCE, Coimbatore - 2009 (240) ELT 53 (Tri.-Chennai)
4. Learned AR fairly admits that issue is covered by the decisions of the Tribunal in similar cases.
5. As per the decision of the Tribunal in the matter of Jubilant Life Sciences Ltd. (supra), DTA unit is entitled for the CENVAT credit available in the books of accounts at the time of conversion from EOU unit to DTA. Considering the above, the impugned order is set aside and the appeal is allowed with consequential relief, if any, as per law.
(Operative portion of the order was pronounced in open court on 23.09.2024) (P.A Augustian) Member (Judicial) (Pullela Nageswara Rao) Member (Technical) ...iss Page 3 of 3