Modvat credit on supplementary invoices recognised as prima facie admissible for Cenvat purposes

Modvat/Cenvat credit on the strength of a supplementary invoice was treated as prima facie admissible under Rule 7(1)(b), because that rule expressly contemplates credit on supplementary invoices and the duty had been paid later on goods cleared earlier. The Tribunal also treated supplementary invoices issued under the erstwhile Central Excise regime as eligible documents for credit, viewed the relevant notification as clarificatory, and followed earlier authority supporting credit in similar circumstances. On that basis, the credit claim was regarded as prima facie sustainable and the stay application was allowed.

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Issues: Whether Modvat credit taken on the strength of a supplementary invoice was prima facie admissible under Rule 7(1)(b) of the Cenvat Credit Rules, 2002 so as to justify grant of stay.

Analysis: Rule 7(1)(b) specifically contemplates credit on supplementary invoices. The goods had been cleared earlier, but duty was subsequently paid, and the Tribunal noted that supplementary invoices issued under the erstwhile Rule 52A of the Central Excise Rules, 1944 were accepted as eligible documents for credit. The Tribunal also treated the relevant notification as clarificatory and relied on the earlier decision supporting admissibility of credit in similar circumstances.

Conclusion: The credit claim was held to be prima facie sustainable, and the stay application was allowed.

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