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2021 (6) TMI 879 - AT - Central ExciseCENVAT Credit - supplementary invoices - goods cleared to sister concern on stock transfer basis - contravention of Rule 9 of the Cenvat Credit Rules, 2004 - HELD THAT:- M/s.Jai Balaji Industries Ltd. (Unit-I) was initially discharging their duty on the goods cleared to their sister concern on stock transfer basis, sales price to independent buyers during the relevant period. However, at the instance of the department, M/s.Jai Balaji Industries Ltd. (Unit-I) discharged their differential duty on the revised assessable value taking into consideration 110% of the cost of manufacture of the goods as per Rule 9 read with Rule 8 of Central Excise Act Valuation Rules, 2000. This has resulted in payment of differential duty. After discharging differential duty they had issued supplementary invoices in favour of the appellant-assessee on which the appellant-assessee had availed Cenvat credit - Rule 9(1)(b) of the Cenvat Credit Rules, 2004 prescribes that Cenvat credit availed on subsequent invoices involving sale of goods is denied in the circumstances where suppression of fact, misstatement etc. are involved. In the present case there is no sale of goods, but the differential duty has been paid on stock-transfer of goods by M/s.Jai Balaji Industries Ltd. (Unit-I) to the appellant-assessee - the entire exercise is revenue neutral and therefore Cenvat credit cannot be denied on the supplementary invoices issued to the sister concern for the differential duty paid - Appeal allowed - decided in favor of appellant.
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