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How and why did you get your H1 before asking this question to your attorney or a qualified person? Oh! Of course, you didn't pay for it, right?
Anyway, now that you've a valid H1, you can use this to work on H1, but make sure you don't work for or get salaries from two different companies, one on your original L1 and the other on your new H1.
Switch permanently on H1 and continue to thrive.
FYI, a huge number of TCS, TIL, InfoSys and other employees have come to the US on L1 and have switched to another company with an H1, finally filed GCs and have even got their US Citizenships. I'm not sure which company you work for or maybe you just don't have the right friends.
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