Cenvat credit on transferred capital goods accepted where challans and duty details proved movement and prior credit was not established.

Cenvat credit on capital goods transferred from one unit to another was accepted where the movement of goods was undisputed and the transfer challans cross-referenced the duty payment particulars. The Tribunal treated such challans as sufficient evidence for transfer of the capital goods and noted that the Revenue produced no material showing that credit had actually been taken at the originating unit for all the goods. It also considered that the credit had either not been availed or had been reversed to the extent admitted, and therefore the credit at the receiving unit was admissible.

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Issues: Whether Cenvat credit was admissible on capital goods transferred from one unit to another after lapse of time, where the transfer was supported by challans and the Revenue disputed the availability of proper duty paying documents and prior availment of credit at the originating unit.

Analysis: The Tribunal followed its earlier decision on the same assessee for a different period and held that the movement of capital goods from the Pune unit to the Noida unit was not in dispute. It accepted that the challans cross-referencing the duty payment particulars were sufficient for the transfer of the capital goods. The Tribunal also found no material to show that the disputed credit had in fact been taken at the Pune unit in respect of all the goods concerned, and noted that the credit had either not been taken or had been reversed to the extent admitted.

Conclusion: The credit was held admissible at the Noida unit, and the assessee succeeded on the issue.

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