Transitional CENVAT credit on stock inputs cannot be denied for a procedural defect when duty-paid nature is undisputed.

Transitional CENVAT credit on inputs lying in stock was treated as available where the duty-paid nature of the inputs and the quantum of credit were not in dispute. The stock statement and supporting records were accepted as establishing the opening balance and the credit claimed. A procedural defect in the declaration could not defeat the assessee's substantive entitlement to set-off under Rule 9A of the Cenvat Credit Rules, 2002. The credit claim therefore could not be denied merely on procedural grounds.

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Issues: Whether transitional CENVAT credit on inputs lying in stock could be denied on a procedural objection when the duty-paid nature of the inputs and the quantum of credit were not in dispute.

Analysis: The stock statement and supporting record established the opening balance of inputs and the credit sought to be availed. The Department did not dispute the eligibility of the credit or produce cogent evidence contradicting the duty-paid character of the inputs. The transitional provision under Rule 9A of the Cenvat Credit Rules, 2002 was treated as preserving the assessee's substantive entitlement to set-off, and a procedural defect in the declaration could not defeat that right.

Conclusion: The credit claim could not be denied merely on procedural grounds, and the issue was decided in favour of the assessee.

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