Cenvat Credit Rules Don't Restrict Credit on Stock Transfers Between Units of Same Entity.

The CESTAT ruled that Rule 9(1)(b) of the Cenvat Credit Rules, 2004, which restricts Cenvat credit, applies only to sale transactions and not to stock transfers between units of the same entity. As the transaction in question was a stock transfer and not a sale, the denial of Cenvat credit to the appellant on the supplementary invoice for duty paid on the stock transfer was deemed unauthorized. The appeal was allowed. .....

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