Commissioner of Central Excise vs Sandoz Pvt. Ltd.

Whether the CESTAT was justified in holding that the respondent-assessee, a DTA unit converted into a 100% Export Oriented Unit with effect from 14-7-2004 was not required to reverse the balance CENVAT credit available in the books of accounts of the assessee on the date of conversion and utilize the said credit in respect of the clearances effected from the 100% Export Oriented Unit is the question of law in this appeal.

The Tribunal has held that the assessee is entitled to avail the credit in balance as on the date of conversion by relying upon the decisions by the Tribunal in 2009 (167) ECR 1 32; 2009 (236) ELT 110 and Tribunal Commissioner of Central Excise, Rajkot v. Ashok Iron and Steel Fabricators, 2002 (140) ELT 277 . It is not in dispute that the decision of the Tribunal in the case of Sun Pharmaceuticals Industries (supra) and GTN Exports Ltd. (supra) have been accepted by the Revenue. It is also not in dispute that appeal filed by the Revenue against the decision of the CESTAT in the case of Ashok Iron & Steel Fabricators (supra) has been dismissed by the Apex Court. In this view of the matter, in our opinion, no fault can be found with the decision of the CESTAT. Hence, the appeal is dismissed with no order as to costs.