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2023 (2) TMI 229 - AT - Central ExciseDenial of CENVAT Credit - denial on the ground that credit was transferred two months before the period prescribed under Rule 10A of Cenvat Credit Rules - HELD THAT:- The transferor assessee is required to transfer the credit at the end of the quarter. In the present case, for the quarter ending December 2013, instead of transferring credit on 31.12.2013, it was transferred on 31.10.2013. Similarly for the quarter ending September 2014, instead of transfer of credit on 30.09.2014 it was transferred on 31.07.2014. I find that there is no dispute that the credit which was transferred was lying accumulated in the Cenvat account of transferor unit. The transfer of credit from one unit to another unit of the same assessee company in terms of Rule 10A is only a procedural requirement and it is not a case of any fresh payment of duty. The credit which is transferred is in respect of duty which was already paid. Therefore, by transfer of credit there is no Revenue implication. If at all there is lapse, it is on the part of the transferor unit against which the audit had already raised the issue and on payment of interest the issue was settled and no further action was taken against the transferor unit. For this reason also Cenvat credit should not have been denied to the appellant. There are no reason that in the facts and circumstances of the present case why the credit can be denied - appeal allowed.
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