100% EOU Can Carry Forward Accumulated CENVAT Credit Upon De-bonding to DTA Unit: CESTAT

The CESTAT has ruled that a 100% Export Oriented Unit (EOU) can carry forward accumulated CENVAT credit upon de-bonding to a Domestic Tariff Area (DTA) unit. The tribunal affirmed that such accrued credit is a statutory right and should not be denied when an EOU transitions to DTA status, provided all legal conditions are met. This decision provides significant relief to businesses that operate as EOUs and later convert to DTA units. It clarifies the seamless transferability of accumulated tax credits, promoting smoother transitions and supporting industrial operations.