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2015 (10) TMI 2542 - CESTAT NEW DELHICENVAT credit of NCCD - manufacture of chewing tobacco, falling under Chapter sub-heading No.2404.41 of the Central Excise Tariff Act, 1985 - unbranded chewing tobacco purchased from M/s.United Tobacco Co., who availed the benefit of SSI exemption, who on bonafide belief did not pay NCCD. Therefore, the Central Excise Duty not charged in the invoices issued to the appellant - NCCD duty paid on demand by supplier and issued supplementary invoice to the appellant. The appellant took cenvat credit of NCCD in its books, which were denied by the Department on the ground that the supplier M/s.United Tobacco Co. was not registered manufacturer, and as such, taking of cenvat credit on the basis of the invoices issued by the unregistered manufacturer is not in conformity with the cenvat statute - whether, the credit can be denied on the ground that the supplier M/s. United Tobacco Co. at the time of supply of goods was not registered with the Central Excise Department, admitting the fact and the position that the NCCD was paid by the supplier, after getting itself registered with the Central Excise Department.? Held that: - Rule 3 of the Cenvat Credit Rules, 2001 permits a manufacturer to take cenvat credit of various duties paid on the inputs and capital goods received in the factory. In clause (v) of Rule 3, it has been specified that National Calamity Contingent Duty (NCCD) leviable under Section 136 of the Finance Act, 2001 is permitted for availment of cenvat credit. Further, Rule 7 of the said rules prescribed the documents based on which cenvat credit can be taken by the manufacturer. In sub-rule (2) of Rule 7 of the said Rules, supplementary invoice has been recognized as the valid document for taking Cenvat credit. The decision in the case of Jayashree Aluminium & Alloys vs. CCE, Chennai [2012 (10) TMI 36 - CESTAT, CHENNAI] relied upon where it was held that if the condition regarding receipt and utilization and the duty paid character of the goods are not in dispute, the credit cannot be denied on the ground that the supplier of the goods was not registered with the Central Excise Authorities at the time of supply of goods. Credit cannot be denied - appeal allowed - decided in favor of appellant.
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