2019 (10) TMI 1332 - AT - Central Excise

Appellant granted Cenvat credit on supplementary invoice despite initial denial based on unjustified endorsement.

NICO EXTRUSIONS LTD. Versus COMMISSIONER OF CENTRAL EXCISE & S.T., DAMAN

NICO EXTRUSIONS LTD. Versus COMMISSIONER OF CENTRAL EXCISE & S.T., DAMAN - 2020 (371) E.L.T. 793 (Tri. - Ahmd.) Issues:Availment of Cenvat credit on a supplementary invoice with an endorsement denying credit availability.Analysis:The case involved the appellant availing Cenvat credit on a supplementary invoice for Special Additional Duty paid by the supplier, despite an initial endorsement on the original invoice denying credit availability. The department denied the credit based on this endorsement. The appellant's counsel argued that the supplier did not claim a refund under Notification No. 102/2007-Cus., supported by a Customs JNCH certificate, and issued a supplementary invoice for SAD, making the appellant eligible for the credit.The Revenue, represented by the Superintendent, maintained the denial of credit citing the endorsement on the invoice as conclusive. After hearing both sides and examining the records, the Member found that the endorsement denying Cenvat credit was in compliance with requirements for SAD refund under Notification No. 102/2007. However, correspondence between customs and the Assistant Commissioner revealed that the supplier did not claim any SAD refund and issued a supplementary invoice for SAD, transferring the burden to the appellant. Consequently, the original invoice's endorsement was nullified, and the Member ruled that denial of Cenvat credit solely based on the endorsement was unjustified. The Member noted that there was no dispute that the SAD had been passed on to the appellant, leading to the conclusion that the appellant was entitled to the Cenvat credit. The impugned order was set aside, and the appeal was allowed.