Cenvat credit on supplementary invoices: pre-deposit waived where the restrictive rule was not yet in force.

Cenvat credit on supplementary invoices was examined with reference to Rule 9(1)(b) of the Cenvat Credit Rules, 2004, for a period before Rule 9(1)(bb) came into force. The Tribunal recorded that the show cause notice relied on Rule 9(1)(b) and that the restrictive bar in Rule 9(1)(bb) applied only from 1 April 2011. On that basis, it treated Rule 9(1)(b) as inapplicable to the disputed period and accepted that the appellant had made out a case for total waiver of the dues, resulting in waiver of pre-deposit and stay of recovery.

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Issues: Whether the appellant was entitled to waiver of pre-deposit where the demand for denial of Cenvat credit was based on Rule 9(1)(b) of the Cenvat Credit Rules, 2004, in relation to credit taken on supplementary invoices for a period prior to the introduction of Rule 9(1)(bb).

Analysis: The dispute at the stay stage turned on whether the existing rule barred credit on supplementary invoices during the relevant period. The order records that the show cause notice proceeded on Rule 9(1)(b), and that the restrictive provision in Rule 9(1)(bb) was introduced only from 1 April 2011. On that basis, the Tribunal found that Rule 9(1)(b) was not applicable to the credit availed for the period in question and that the appellant had shown a case for total waiver of the dues.

Conclusion: The appellant was held entitled to complete waiver of pre-deposit and stay of recovery.

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