CENVAT credit on duty-paid inputs cannot be denied by reopening the supplier's assessment at the recipient stage.

Credit on duty-paid inputs could not be denied to the recipient merely because the supplier may have paid duty under a different serial number in Notification No. 23/2003-C.E. The relevant principle was that, once the duty actually paid by the supplier on the inputs had been accepted by the Revenue, the assessment at the supplier's end could not be reopened at the recipient stage to question the applicable entry or rate. On that basis, the recipient's credit was upheld and the assessee succeeded.

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Issues: Whether credit taken by the recipient on duty paid by the supplier could be denied on the ground that the supplier ought to have paid duty under a different serial number of Notification No. 23/2003-C.E., dated 31-3-2003.

Analysis: The recipient had taken credit of the duty actually paid by the manufacturer on the inputs received and used in the manufacture of excisable goods. The dispute raised by the Revenue was only that the supplier had paid duty under the wrong serial number and should have paid duty under another entry of the notification. The principle applied was that the assessment of the supplier cannot be reopened at the recipient end once the duty paid on the inputs has been accepted.

Conclusion: Credit could not be denied to the recipient on this ground, and the assessee succeeded.

Ratio Decidendi: Where duty has been paid by the supplier on inputs and accepted by the Revenue, the recipient cannot be denied credit by reopening the supplier's assessment at the recipient stage on the premise that a different rate or serial number was applicable.

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