Functional comparability under TNMM supported exclusion of ITeS comparables with R&D, intangibles, diversified operations, or unavailable segmental da...
The appellant was denied CENVAT credit on the allegation that the sender units inflated the value of Soap Noodles stock transferred to the appellant, leading to excess credit being taken. The key issues were whether the appellant is entitled to take CENVAT credit of duty paid on inputs u/r 3 of CENVAT Credit Rules, 2004, and the consequent recovery of credit along with interest and penalty. It was held that since the appellant paid duty on the invoices issued by the sender units at 115%/110% of the cost of production as per Rule 8 of Valuation Rules, the appellant is entitled to take CENVAT credit of the duty paid. The Punjab & Haryana High Court in VG. STEEL INDUSTRY VERSUS CCE case observed that even if duty is paid in excess of the finally payable amount, unless the excess is refunded, the assessee can claim CENVAT credit as the department cannot get the duty twice. Since the higher duty paid by the supplier was not challenged by the Revenue and not refunded, the appellant correctly took the CENVAT credit. The CENVAT credit of duty paid on procurement of inputs is admissible and cannot be asked to be reversed. Consequently, no penalty can be imposed. The impugned order was set aside, and the appeal was allowed.
The appellant was denied CENVAT credit on the allegation that the sender units inflated the value of Soap Noodles stock transferred to the appellant, leading to excess credit being taken. The key issues were whether the appellant is entitled to take CENVAT credit of duty paid on inputs u/r 3 of CENVAT Credit Rules, 2004, and the consequent recovery of credit along with interest and penalty. It was held that since the appellant paid duty on the invoices issued by the sender units at 115%/110% of the cost of production as per Rule 8 of Valuation Rules, the appellant is entitled to take CENVAT credit of the duty paid. The Punjab & Haryana High Court in VG. STEEL INDUSTRY VERSUS CCE case observed that even if duty is paid in excess of the finally payable amount, unless the excess is refunded, the assessee can claim CENVAT credit as the department cannot get the duty twice. Since the higher duty paid by the supplier was not challenged by the Revenue and not refunded, the appellant correctly took the CENVAT credit. The CENVAT credit of duty paid on procurement of inputs is admissible and cannot be asked to be reversed. Consequently, no penalty can be imposed. The impugned order was set aside, and the appeal was allowed.
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