CENVAT credit for AED (GSI) cannot be denied merely because a supplementary invoice later reflects the duty element.

CENVAT credit could not be denied where inputs had already suffered AED (GSI) and the duty element was included in the original dealer invoice, even though a supplementary invoice later separately reflected that amount. The objection based on Rule 7(1)(b) of the CENVAT Credit Rules, 2001 failed because the supplementary invoice merely clarified and cross-referenced an existing transaction; the underlying duty incidence was not in dispute. In light of the retrospective credit available for AED (GSI) under Notification No. 7/2003-CE, the denial of credit was unsustainable. The appeal therefore succeeded and the credit claim was upheld.

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Issues: Whether the appellant was entitled to CENVAT credit of Additional Excise Duty (GSI) on inputs when the duty had already been included in the original dealer invoice but was also reflected in a supplementary invoice issued by the registered dealer.

Analysis: The credit was denied only because the appellant relied on a supplementary invoice issued by the dealer, while the department objected that such supplementary invoice was not contemplated under Rule 7(1)(b) of the CENVAT Credit Rules, 2001. The duty position was not in dispute: the inputs had suffered AED (GSI), the total duty in the original invoice included that element, and the supplementary invoice merely clarified and cross-referenced the original transaction. In view of the amendment giving retrospective credit for AED (GSI) under Notification No. 7/2003-CE dated 01.03.2003, and following the principle applied in the cited precedent, there was no basis to deny the credit.

Conclusion: The appellant was entitled to CENVAT credit of AED (GSI), and the denial based on the supplementary invoice was unsustainable.

Final Conclusion: The appeal succeeded and the credit claim was upheld on the footing that the duty element had already been borne and passed on in the underlying sale invoice.

Ratio Decidendi: Where the incidence of duty is undisputedly borne by the input and the original invoice already includes the duty element, CENVAT credit cannot be denied merely because the duty component is later separately reflected by a supplementary invoice.

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