Even if excise duty was legally not payable, credit cannot be denied

Jai Balaji Industries Ltd. Vs Commissioner of CGST & Central Excise (CESTAT Kolkata)

It is now settled legal position that credit cannot be denied to the recipient when duty amount was legally not payable or that duty was paid at a higher rate or value. The Hon’ble Punjab and Haryana High Court in the case of CCE, Chandigarh vs. Ranbaxy Labs Ltd 2006 (203) ELT 213 (P&H) held that even if duty was legally not payable, credit cannot be denied to the recipient of goods when admittedly duty has been collected by the Revenue.

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