Transitional Cenvat credit cannot be denied for procedural delay where duty-paid stock is undisputed.

Transitional Cenvat credit on stock lying in the factory could not be denied merely because credit was taken belatedly or because value particulars were not furnished, where the duty-paid nature of the goods and the stock position were undisputed. The omission was treated as a procedural lapse, and the department's awareness of the stock was relevant in rejecting the objection. On that basis, denial of credit was not justified and recovery and penal provisions were not attracted. The assessee was therefore entitled to the transitional credit.

---

---

Issues: Whether transitional Cenvat credit could be denied on the ground of delay in availment and non-furnishing of value details when the stock and duty-paid nature of the goods were undisputed.

Analysis: The entitlement to Cenvat credit on the stock lying in the factory was not in dispute, nor was the duty-paid character of the raw material stock. The only objection related to non-furnishing of value particulars and the belated availment of credit. Such omission was treated as a procedural lapse. Since the credit was transitional in nature and the department was aware of the stock position, the absence of immediate availment did not justify denial of the credit. In these circumstances, the recovery and penal provisions were not attracted.

Conclusion: Transitional Cenvat credit could not be denied merely for the procedural lapse or delay, and the assessee was entitled to the credit.

---