Supplementary invoice credit is admissible when duty is later paid and no statutory disqualification applies.

Modvat/Cenvat credit was treated as admissible on a supplementary invoice where the additional duty was paid later, because Rule 7(1)(b) recognises a supplementary invoice as a valid document for credit. The analysis also notes that the relevant notification was viewed as clarificatory and supportive of Rule 7, and that no disqualifying circumstance under the proviso to Section 11A of the Central Excise Act was found to bar the claim. On that basis, the credit disallowance was set aside and the assessee's claim was accepted.

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Issues: Whether Modvat credit could be validly taken on the basis of a supplementary invoice where the additional duty was paid later, and whether such credit was barred on the facts of the case.

Analysis: Rule 7(1)(b) of the Cenvat Credit Rules, 2002 recognises supplementary invoice as a permissible document for availing credit. The duty in question was paid subsequently, and the Tribunal relied on earlier decisions holding that a supplementary invoice issued for such duty payment can support credit, including the view that the relevant notification is clarificatory and operates in aid of Rule 7. No disqualifying circumstance bringing the case within the proviso to Section 11A of the Central Excise Act, 1944 was found to defeat the credit claim.

Conclusion: The credit taken on the supplementary invoice was held to be admissible and the disallowance was set aside in favour of the assessee.

Final Conclusion: The impugned order was reversed and the appeal succeeded with consequential relief.

Ratio Decidendi: Supplementary invoices are valid documents for Modvat or Cenvat credit where the duty is otherwise lawfully paid, and such credit cannot be denied absent a statutory disqualification.

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