Cenvat credit of duties paid on inputs at time of debonding of EOU into DTA

M/s. Stanadyne Amalgamations Pvt. Ltd. Vs M/s. AVO Carbon India Pvt. Ltd. (Madras High Court) Madras High Court has allowed Cenvat credit of duty paid on inputs/raw material at the time of debonding of an EOU into DTA. The Court observed that proviso in Rule 3 of the Cenvat Credit Rules, 2004 inserted in 2008 by Notification No. 35/2008-C.E. (N.T.), was more in the nature of an explanation clarifying about allowing of credit on capital goods and was not a stand-alone enabling provision to provide Cenvat credit. The High Court also held that the proviso was not only not happily worded but was p...