We introduce a scheme which gives rise to additional degree of freedom for the same number of discrete velocities in the context of the lattice Boltzmann model. We show that an off-lattice D3Q27 model exists with correct equilibrium to recover Galilean-invariant form of Navier-Stokes equation (without any cubic error). In the first part of this work, we show that the present model can capture two important features of the microflow in a single component gas: Knudsen boundary layer and Knudsen Paradox. Finally, we present numerical results corresponding to Couette flow for two representative Knudsen numbers. We show that the off-lattice D3Q27 model exhibits better accuracy as compared to more widely used on-lattice D3Q19 or D3Q27 model. Fina...