The appellant was denied CENVAT credit on the allegation that the sender units inflated the value of...

The appellant was denied CENVAT credit on the allegation that the sender units inflated the value of Soap Noodles stock transferred to the appellant, leading to excess credit being taken. The key issues were whether the appellant is entitled to take CENVAT credit of duty paid on inputs u/r 3 of CENVAT Credit Rules, 2004, and the consequent recovery of credit along with interest and penalty. It was held that since the appellant paid duty on the invoices issued by the sender units at 115%/110% of the cost of production as per Rule 8 of Valuation Rules, the appellant is entitled to take CENVAT credit of the duty paid. The Punjab & Haryana High Court in VG. STEEL INDUSTRY VERSUS CCE case observed that even if duty is paid in excess of the final..... .....

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