Cenvat credit cap on supplementary invoices: differential duty cannot be taken beyond the prescribed 95% limit.

Where the applicable Cenvat credit notification limited input duty credit to 95% during the relevant period, that restriction also governed differential duty reflected in supplementary invoices. The assessee had already availed credit within the 95% limit on the original invoices, but could not take full credit on the later supplementary duty because the same notification-based cap continued to apply to the inputs. The differential duty therefore remained subject to the prescribed ceiling, and excess credit was not permissible.

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Issues: Whether the assessee was entitled to take 100% Cenvat credit of the differential duty reflected in supplementary invoices, when the applicable notification limited input duty credit to 95% during the relevant period.

Analysis: The applicable notification regime permitted credit only to the extent of 95% of the duty paid on inputs during the relevant period. The assessee had correctly availed credit limited to 95% on the basis of the original invoices, but later took full credit of the differential duty shown in supplementary invoices relating to the same inputs. The restriction on credit under the notifications applied equally to supplementary invoices, and the differential duty could not be availed in excess of the prescribed limit.

Conclusion: The assessee was not entitled to 100% credit of the differential duty shown in the supplementary invoices; the credit restriction to 95% applied, and the appeal failed.

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