Cenvat Credit Can Be Used for Excise Duty on Finished Goods or Indigenous Inputs

Zydus Lifesciences Limited Vs C.C.E.-Ahmedabad-II (CESTAT Ahmedabad)

A recent order by the CESTAT (Customs, Excise and Service Tax Appellate Tribunal) Ahmedabad has addressed the issue of whether 100% Export-Oriented Units (EOUs) can use Cenvat credit for paying excise duty when debonding the unit. This decision has significant implications for EOUs and their ability to utilize Cenvat credit for such payments.

1. Background of the Case 

The case revolves around the payment of duty by a 100% EOU during the debonding process. The core issue is whether Cenvat credit can be employed for this purpose.

2. Appellant’s Argument

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