Cenvat credit on duty-paid job work goods was allowed despite supply through a registered unit of the same company.

Cenvat credit could not be denied merely because the goods were supplied through a registered unit of the same company and that unit was not the actual manufacturer, where the goods were made on job work basis and duty had already been paid. The recipient units' failure to verify the manufacturer's identity or take further precautions was not treated as fatal in the peculiar facts. As there was no dispute that the goods were duty-paid and the documents issued by the registered unit were accepted as sufficient, credit entitlement was upheld and the departmental challenge failed.

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Issues: Whether Cenvat credit could be denied to the recipient units on the ground that the goods were supplied through a registered unit of the same company and the supplier was not the actual manufacturer, despite the duty having been paid on the goods manufactured on job work basis.

Analysis: The goods were manufactured on job work basis by Unit-V, which was registered with the jurisdictional officers, and duty had been paid by that unit. In these circumstances, the objection that the recipient units had not verified the identity of the manufacturer or taken further precautions was not accepted. The record showed no dispute about the duty-paid nature of the goods, and the documents issued by the registered unit were treated as sufficient for credit entitlement in the peculiar facts of the case.

Conclusion: Cenvat credit was held to be admissible, and the departmental challenge failed.

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