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TMI Blog2010 (12) TMI 1130X X X X Extracts X X X X X X X X Extracts X X X X ..... Respondent. ORDER Heard both sides. 2. The short question involved in this case is whether the assessee is entitled to avail input credit on the basis of supplementary invoice issued by their unit or not. The facts of the case are that the respondents are having two Units, Unit no. 2 was cleared goods to Unit no. 1 on the strength of invoice at a price which have been arrived as per CAS 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid by Unit no. 2 to the respondent on the strength of supplementary invoice. Against that order, revenue is in appeal. 3. Ld. DR submitted that the lower appellate authority in his order has categorically held that as there was no sale of the goods. The goods have been transferred from one unit to another unit. The respondent are entitled to claim input credit on the strength of supplemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts by the respondent. The Hon'ble High Court in the case of Karnataka Soaps & Detergents Ltd. supra has clearly held as under : "A very careful reading of the above rules shows that the bar of availment of credit on supplementary invoices would operate only when the additional amount of duty becomes recoverable from the manufacturer on account of non levy or short levy by reason of fraud, collus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le. We are in agreement with the above contentions of the appellants that Rule 7(1)(b) of Cenvat credit Rules cannot debar availment of Cenvat credit at Bangalore factory for the simple reason that the transaction between the two factories is not one of sale. It should also be borne in mind that both the factories belong to the Government of Karnataka. Although the irregularity committed in Mysore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court it is very much clear that in case of suppression of facts the assessee is not entitled to avail input credit on the strength of supplementary invoice. As in this case there is no specific allegation of suppression has been found against the respondent. Hence, the respondents are entitled to avail input credit on the strength of supplementary invoice. Accordingly, I do not find any infirmi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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