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2024 (1) TMI 332 - CESTAT CHENNAICENVAT Credit - Stock transfer - disallowance of ineligible credit transferred by Unit-II to Unit-I - HELD THAT:- The very same issue came up for consideration before the Tribunal in appellant's own case in M/S. INDO SHELL CAST PVT. LTD. (UNIT I) VERSUS THE COMMISSIONER OF GST & CENTRAL EXCISE, COIMBATORE [2023 (7) TMI 429 - CESTAT CHENNAI], the Tribunal has held that the credit availed by Unit-I on account of the excess duty paid by Unit II cannot be denied. The excess duty happened to be paid because of the practical difficulties of arriving at the actual production cost at the time of clearance of goods. Further, the situation is completely revenue neutral. It also requires to be stated that when the duty has been paid by Unit-II as per the invoices, the credit cannot be denied by the department at the recipient’s unit. Following the decisions in the appellant’s own case for the period from April 2007 to September 2011, the demand and penalties cannot sustain and requires to be set aside. The impugned orders are set aside. The appeals are allowed.
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