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2016 (4) TMI 191 - AT - Central ExciseCENVAT credit - inter unit transfer of credit - transferred by DT units, for clearance of the goods for home consumption - whether on 15.04.2004, three units would be considered as separate units and the transfer of credit from DT unit to the Assessee and utilisation of the said credit for clearance of the finished goods by the Assessee - Held that:- Rule 3 of the Cenvat Credit Rules 2004 provides a manufacturer of final product shall be allowed to take cenvat credit of the duty paid on any excisable goods received in the factory or manufacturer of the final product. Sub-Rule (4) of Rule 3 of Rules 2004 provides the Cenvat Credit may be utilized for payment of any duty of excise on any final product. Thus, there is no one-to-one co-relation between the inputs and final product. The Assessee was holding a single registration certificate during the material period and they have rightly discharged duty liability for clearance of the goods for home consumption by utilising credit from Cenvat Account on inter-unit transfer of credit from DT Division to the Assessee, by a common pool. In any event, substantial benefit of the Assessee of utilisation of Cenvat Credit by a common pool cannot be denied by a technical infraction of provision of law, if any. In view of the above discussions, we hold that the assessee rightly utilized the Cenvat Credit transferred by DT units, for clearance of the goods for home consumption during the period April 2005 to Sept. 2009 as the Assessee was holding single registration certificate during the said material period. Accordingly, the demand of Cenvat Credit alongwith interest and penalties are set aside. The penalty imposed on Shri Deepak Prabhakar Marathe, General Manager and Authorised Signatory of the assessee, is also set aside. The appeals filed by the appellants are allowed. The application for extension of stay is dismissed as infructuous. - Decided in favour of assessee
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