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2021 (10) TMI 1228 - CESTAT MUMBAICENVAT Credit - removal of goods after use - denial of credit on the ground that transaction value against stock transfer is not a sale - availed in terms of proviso to Rule (5A)(a) of CENVAT Credit Rules, 2004 - Revenue neutrality - HELD THAT:- A close reading of Rule 5 and sub-Rule 5A would clearly reveal that ‘removal after being used’ is the requirement for availment of CENVAT credit and whether it is a sale transaction/not a sale transaction is not a criteria that would determine the eligibility of availment of such credit and therefore it would be erroneous to say that transaction value of the invoice would have no basis unless it is a sale transaction because CENVAT credit was taken at the time of purchase of capital goods that has already determined the transaction value and it is that value which is noted in the transfer challan. Revenue neutrality - HELD THAT:- The appellant had clearly mentioned in the documents evidencing transfer that the valuation was done as per the Circular No. 643/34/2002-CX dated 01/07/2002 and the same is held to be proper calculation by the Jurisdictional Range Offer of the supplier of capital goods, besides the facts that it is now a settled position of law that legality of such availment of credit cannot be questioned at the receiver’s end let alone a revenue neutral situation. Appeal allowed - decided in favor of appellant.
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