CENVAT credit on transferred spare parts allowed to second unit after reversal was made good and no fraud was alleged.

CENVAT credit on spare parts transferred from one manufacturing unit to another was held admissible to the receiving unit where the credit originally taken in the first unit had already been reversed and made good. In the absence of any allegation of fraud, misrepresentation, or suppression, the procedural lapse at the time of transfer was treated as curable, and the benefit of doubt was given on compliance. The operative effect was that the second unit was entitled to the transferred credit.

---

---

Issues: Whether credit was admissible to the second unit in respect of spare parts transferred from the first unit after the credit originally taken in the first unit had been reversed.

Analysis: There was no allegation of fraud, misrepresentation, or suppression. The reversal of the credit taken in the first unit had already been made good, and the appellants were given the benefit of doubt regarding compliance with the procedural requirement at the time of transfer.

Conclusion: The credit in respect of the transferred spare parts was admissible to the second unit.

---