Cenvat credit on Special Additional Duty cannot be denied where a supplementary invoice passes on the duty burden despite an original endorsement.

Cenvat credit on Special Additional Duty could not be denied merely because the original invoice carried an endorsement that no credit was available. The endorsement was made to satisfy the refund condition under Notification No. 102/2007-Cus. for the importer, but the supplier had not claimed any refund and later issued a supplementary invoice for the Special Additional Duty. As the duty burden was in fact passed on through the supplementary invoice, the original endorsement stood neutralised and did not defeat the credit claim. The denial of Cenvat credit was therefore unsustainable, and the assessee was entitled to the credit.

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Issues: Whether Cenvat credit on Special Additional Duty paid through a supplementary invoice could be denied merely because the original invoice contained an endorsement that no credit was available.

Analysis: The endorsement on the original invoice was made to satisfy the condition under Notification No. 102/2007-Cus. for refund of Special Additional Duty to the importer. The record showed that the supplier had not claimed any refund and had subsequently issued a supplementary invoice for the Special Additional Duty. Since the duty burden was in fact passed on through the supplementary invoice, the endorsement in the original invoice stood nullified and could not, by itself, defeat the credit claim.

Conclusion: The denial of Cenvat credit was not sustainable and the assessee was entitled to the credit.

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