2007 (3) TMI 639 - AT - Central Excise

Summary

Issues involved:
The issue involved in this case is whether the respondent is eligible to avail Cenvat credit on the supplementary invoices issued by the supplier of inputs to him.

In this judgment by the Appellate Tribunal CESTAT, AHMEDABAD, the Revenue filed an appeal against the Order-in-Appeal dated 27-7-2005, which set aside the Order-in-Original confirming the demand of duty and penalty imposed on the respondent. The respondent also filed a Cross Objection against the appeal by the Revenue.

None appeared on behalf of the respondent despite notice, but written submissions were made, requesting consideration and decision on the appeal. The learned SDR was heard, and the record was perused.

The main issue revolved around the eligibility of the respondent to avail Cenvat credit on supplementary invoices issued by the supplier of inputs. The audit party discovered that the supplier had short paid duty due to a lower assessable value. Upon being informed, the supplier rectified the duty payment and issued a supplementary invoice to the respondent. The adjudicating authority initially disallowed the credit on these invoices, claiming the supplier was not authorized to issue them. However, the Commissioner (Appeals) overturned this decision, stating that unless there was evidence of fraud, collusion, or willful misstatement, the Cenvat credit was admissible.

The Commissioner's findings emphasized the importance of evidence, noting that no show cause notice had been issued to the supplier under Section 11A for the short payment. As a result, the Tribunal found no merit in the Revenue's appeal, as there was no evidence contradicting the Commissioner's decision. The Revenue's appeal was dismissed, and the cross-objection supporting the Order-in-Appeal was also disposed of.