Cenvat credit cannot be denied merely because inputs were stock transferred from sister concerns rather than purchased.

Cenvat credit could not be denied solely because inputs were received from sister concerns on stock transfer basis rather than by purchase, where the inputs were received in the factory and their duty-paid character was undisputed. Documentary proof of duty payment was also accepted, and the credit scheme did not require purchase as a mandatory condition on these facts. The Revenue's appeal therefore failed.

---

---

Issues: Whether Cenvat credit could be denied merely because the inputs were received from sister concerns on stock transfer basis and not by purchase.

Analysis: The inputs were received in the factory and their duty-paid character was not in dispute. The documentary evidence showing payment of duty was also undisputed. The governing credit scheme did not make purchase of inputs a necessary condition for availing credit in the facts of the case.

Conclusion: Cenvat credit could not be denied on the sole ground that the inputs were not purchased, and the Revenue's appeal failed.

---