Cenvat credit on supplementary invoice upheld where duty was later paid and goods were received for manufacture

Cenvat credit of National Calamity Contingent Duty was admissible where the goods were duty-paid, received, and used in manufacture, and the law recognised a supplementary invoice as a valid document. Although the supplier was unregistered at the time of clearance, it later paid the duty and issued the supplementary invoice after registration. Denial of credit solely on the ground of the supplier's earlier non-registration was therefore not justified, and the assessee's credit claim was upheld.

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Issues: Whether cenvat credit of National Calamity Contingent Duty could be denied merely because the supplier was unregistered at the time of supply, where the duty was subsequently paid and a supplementary invoice was issued.

Analysis: Rule 3 of the Cenvat Credit Rules, 2001 permits credit of NCCD leviable under Section 136 of the Finance Act, 2001. Rule 7(2) recognises a supplementary invoice as a valid document for availing credit. The supplier subsequently paid the duty and issued the supplementary invoice after registration, and the duty-paid character of the goods, their receipt, and their use in manufacture were not in dispute. In such circumstances, denial of credit solely on the ground that the supplier was unregistered at the time of clearance was not justified.

Conclusion: Cenvat credit was admissible to the assessee and could not be denied on the ground of the supplier's earlier non-registration.

Ratio Decidendi: Where duty-paid goods are received and utilised for the intended purpose, and the law recognises a supplementary invoice as a valid document, credit cannot be denied merely because the supplier was unregistered at the time of supply.

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