Cenvat credit on dealer invoices upheld where supplementary invoices formed part of the same supply chain.

Credit was admissible on invoices issued by a first stage dealer where those invoices were based on the manufacturer's supplementary invoices, because the dealer's invoice was treated as a valid document under Rule 7 of the Cenvat Credit Rules, 2002. The supplementary invoice was regarded as part of the main invoice, and the duty shown therein was treated as having been paid on the same inputs ultimately supplied. Denial of Modvat/Cenvat credit solely because the dealer invoice traced back to a supplementary invoice was found unjustified, and the credit claim was sustained.

---

---

Issues: Whether credit was admissible on invoices issued by the first stage dealer where those invoices were based on supplementary invoices issued by the manufacturer, and whether such dealer invoices constituted valid documents under Rule 7 of the Cenvat Credit Rules, 2002.

Analysis: The invoice issued by the first stage dealer was treated as covered by Rule 7 of the Cenvat Credit Rules, 2002. The supplementary invoice was regarded as part of the main invoice, and the duty reflected therein was duty paid on the same inputs ultimately supplied to the respondent. Since the goods were procured from the first stage dealer and the duty had in substance been paid, denial of credit merely because the dealer's invoice was traceable to a supplementary invoice was found unjustified.

Conclusion: Credit was held admissible on the dealer invoices, and the denial of Modvat/Cenvat credit was not sustained.

---