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2022 (9) TMI 796 - AT - Central ExciseCENVAT Credit - duty paying document - entitlement to credit on the basis of supplementary invoices issued by the supplier pursuant to payment of duty that became recoverable on account of non-levy or short levy by reasons of fraud or collusion - Rule 9(1)(b) of the CENVAT Credit Rules, 2004 - HELD THAT:- The Revenue does not dispute the legal position that the aforesaid Rule restricting the credit would not apply in case the credit has been availed on goods which are not sold by the supplier manufacturer - It is the case of the Revenue that the assessee and the conversion agents are neither related nor sister unit and there is no stock transfer amongst the aforesaid parties. On perusal of Rule 9(1)(b), it is found that the bar from availing credit on the supplementary invoice is only when the goods are sold to the recipient who has claimed the credit on the basis of supplementary invoices. There is no criterion laid down in the said Rules that the transferring unit should be a sister unit or a related party in order to become eligible for availing credit. The Revenue has not disputed the arrangements between the parties that the converted aluminium ingot has not been sold by the conversion agent to the assessee appellant - the restriction imposed under Rule 9(1)(b) has no application in the present case so as to deny the credit availed by the Appellant on the basis of supplementary invoices issued by the conversion agents in absence of sale of goods by the conversion agents to the assessee appellant herein. The demand cannot be sustained and is hence, set aside - Appeal allowed - decided in favor of appellant.
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