Cenvat credit cannot be denied only for invoice defects when duty payment and Rule 9 compliance can still be verified.

Cenvat credit on additional excise duty paid on sugar could not be denied solely because the dealers' invoices did not expressly show the duty element or because the documentary requirement under Rule 9 of the Cenvat Credit Rules, 2004 was not strictly met. The Court noted that the duty had in fact been paid and that the real question was whether its incidence had been passed on to the assessee. It held that the documents had not been properly examined for Rule 9(2) compliance, remanded the matter for fresh scrutiny, and directed that credit be allowed if the duty payment, use in manufacture, and other required particulars are satisfactorily established.

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Issues: Whether Cenvat credit of additional excise duty paid on sugar for the relevant period was admissible when the dealers' invoices did not expressly show the duty element, and whether the claim could be rejected merely for non-compliance with the documentary requirement under Rule 9 of the Cenvat Credit Rules, 2004.

Analysis: The additional excise duty on the input had in fact been paid, and the real controversy was whether that duty burden had been passed on to the assessee. The claim was rejected below only on the footing that the invoices did not reflect the duty element and that the procedural requirement in Rule 9 had not been satisfied. The relevant period preceded the 2004 Rules, and the Court held that the claim could not be denied solely on that basis. It further noted that Rule 9(2) permits credit to be allowed where the document contains sufficient particulars and the authority is satisfied that duty on the input has been paid and the input has been used in manufacture. The documents produced had not been properly scrutinized to determine whether the duty incidence was passed on.

Conclusion: The question was answered in favour of the assessee. The denial of credit was set aside and the matter was remanded for fresh scrutiny of the documents and satisfaction under Rule 9(2); if the requirements are met, the credit is to be allowed.

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