2018 (12) TMI 1782

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....y M/s. HLL and clearing the small packs of detergent powder on payment of duty. During the periods April 2001 to March 2002 and June 2002 to March 2003 M/s. HLL paid differential duty in a case of under valuation detected during audit. They issued supplementary invoices for the differential duty paid and on the basis of such supplementary invoices, the appellant availed Cenvat Credit. The department took the view that the credits availed on the basis of such supplementary invoices were irregular, since these were issued in respect of payment of tax in an under valuation case. Accordingly, Show Cause Notices were issued proposing to reverse the Cenvat Credit availed on the basis of supplementary invoices. 2. The Show Cause Notices were fi....

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....the following:- (i) Karnataka Soaps & Detergents-2005 (192) ELT 892 (T) (ii) -do- Upheld by Karnataka HC-2010 (258) ELT 62 (Kar) (iii) Jai Raj Ispat Ltd.-2007 (217) ELT 272 (T) (iv) -do- Upheld by AP High Court-2009 (245) ELT 118 (AP) (v) Bosch Chassis Systems India-2017 (358) ELT 255 (T) (v) Jindal Steel & Power Ltd.-2017 (355) ELT 568 (T) (vi) United Phosphorus Ltd. 2014 (313) ELT 418 (T) 7. We have perused the said case laws. In the Tribunal's decision in the case of Karnataka Soaps and Detergents, Ltd. (Supra), the Tribunal has taken the view that the ban on taking credit of supplementary invoices operate only in the case of sale. In the case of Stock Transfer, prohibitio....

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....coverable from the manufacturer on account of non-levy or short levy by reason of fraud, collusion or any wilful misstatement or suppression of facts etc. Further, the prohibition to avail credit on supplementary invoices will operate only in the case of sale. In other words the receiver of the input should have purchased the goods from the manufacturer who had to pay the additional amount of duty after detection of suppression of facts, fraud, etc., on his part. Therefore, when there is simply a stock transfer the prohibition under Rule 7(1)(b) will not be applicable. In other words, when there are two units A and B, and if goods are stock transferred from unit A to unit B and even if the additional amount of duty becomes recoverable from ....