TMI Blog2010 (12) TMI 1130X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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. As the actual cost of production could not be as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngth 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 supplementary invoices as per the provisions of Rule 9(1)(b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, collusion or any wilful mis-statement or suppression of facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 resulted in Revenue loss to the Mysore Commissionerate, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 infirmity with the impugned order, the same is held. Appeal file ..... X X X X Extracts X X X X X X X X Extracts X X X X
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