Supplementary invoices valid for Cenvat credit where no fraud or suppression exists, and ownership is not required.

Supplementary invoices issued after later payment of duty remained valid documents for availing Cenvat credit on capital goods under Rule 7(1)(b) of the Cenvat Credit Rules, 2002, because the duty differential did not arise from fraud, collusion, wilful misstatement, suppression of facts, or similar contravention. The credit was therefore admissible on the invoices. The objection that the assessee was not the owner of the capital goods also failed, because ownership is not the governing test for such credit. The appeal was dismissed and the order allowing Cenvat credit was sustained.

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Issues: Whether Cenvat credit on capital goods could be availed on the basis of supplementary invoices issued after payment of duty, and whether absence of ownership of the capital goods with the assessee disentitled such credit.

Analysis: Rule 7(1)(b) of the Cenvat Credit Rules, 2002 permits availment of credit on supplementary invoices issued by a manufacturer or importer of inputs or capital goods. The exception applies only where the additional duty becomes recoverable on account of fraud, collusion, wilful statement, suppression of facts, or similar contravention. The duty on the capital goods had been paid later by the supplier when the export obligation was not fulfilled, and credit was taken on the supplementary invoices thereafter. In the absence of any fraud or suppression, the supplementary invoices remained valid documents for credit. The objection based on ownership also failed, as ownership of capital goods is not the governing test for availment of credit.

Conclusion: Cenvat credit was admissible on the supplementary invoices, and the assessee was not disentitled merely because it was not the owner of the capital goods.

Final Conclusion: The appeal was without merit and the order allowing Cenvat credit in favour of the assessee was sustained.

Ratio Decidendi: Supplementary invoices are valid documents for Cenvat credit unless the duty differential arises from fraud, suppression, collusion, wilful misstatement, or similar misconduct, and ownership of the capital goods is not a condition for such credit.

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