2018 (11) TMI 161 – CESTAT CHENNAI – TMI – CENVAT Credit – transfer of credit by EOU – both units merged subsequently – revenue neutrality – Held that:- As seen from the show cause notice, later both the units have merged to one unit, pursuant to debonding of the EOU. Taking note of these facts, it is very much clear that the situation is a revenue neutral one, even if the demand is confirmed, both the units which has been now merged into one unit of the same assessee, shall be availing the credit – demand requires to be set aside – appeal allowed – decided in favor of appellant. – Appeal No. E/41904/2018 – Final Order No. 42751/2018 – Dated:- 1-11-2018 – Ms. Sulekha Beevi C.S., Member (Judicial) Shri M. Kannan, Advocate for the Appellant
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of credit by EOU was barred. In the present case, the EOU continued to avail credit in respect of DTA also for renting of immovable property service which was noticed by audit of accounts for the impugned period. Pursuant to such audit, show cause notice was issued proposing to recover the irregularly availed credit to the tune of ₹ 14,82,351/- along with interest and also for imposing penalties. After due process of law, the original authority confirmed the demand, interest and imposed equal penalty. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, ld. counsel Shri M. Kannan submitted that the EOU was continuously availing the credit for both the units prior to July 2014 and by bona
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rgued by him that the appellants were availing the credit in violation of provisions of law which got amended with effect from 2014. The irregularity would not have come to light but for the audit conducted by the departmental officers. Therefore, the confirmation of demand is legal and proper. 4. Heard both sides. 5. The foremost argument put forward by the ld. counsel for appellant is that the situation is a revenue neutral one and the EOU and DTA units being of the same assessee, even if the service tax as paid is confirmed, the other DTA would be eligible for the credit. As seen from the show cause notice, later both the units have merged to one unit, pursuant to debonding of the EOU. Taking note of these facts, it is very much clear th
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