https://www.taxtmi.com/caselaws?id=153965 A recipient unit was entitled to deemed credit on inputs received from a supplier operating under the compounded levy scheme because duty under that scheme is discharged on the basis of the levy, not invoice-wise, and Notification No. 58/97-C.E.(N.T.) specifically allows such credit. The reference in the invoice to Rule 96ZP(3) did not defeat the claim, as that rule gives effect to Section 3A of the Central Excise Act, 1944. The recipient's credit could not be denied by questioning the supplier's duty discharge at the recipient's end; any differential duty dispute had to be pursued against the supplier by the proper jurisdictional officer. The penalties on both the recipient and the supplier were therefore not justified. en-us Thu, 04 Feb 2010 00:00:00 +0530 Fri, 02 Aug 2013 12:43:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=153965 A recipient unit was entitled to deemed credit on inputs received from a supplier operating under the compounded levy scheme because duty under that scheme is discharged on the basis of the levy, not invoice-wise, and Notification No. 58/97-C.E.(N.T.) specifically allows such credit. The reference in the invoice to Rule 96ZP(3) did not defeat the claim, as that rule gives effect to Section 3A of the Central Excise Act, 1944. The recipient's credit could not be denied by questioning the supplier's duty discharge at the recipient's end; any differential duty dispute had to be pursued against the supplier by the proper jurisdictional officer. The penalties on both the recipient and the supplier were therefore not justified. Case-Laws Central Excise Thu, 04 Feb 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=153965