2007 (5) TMI 522 - AT - Central Excise

Summary

Issues involved: Appeal against order denying Cenvat credit on notarized courier bill of entries and imposition of penalty.

Summary:
1. The appellant, a composite mill manufacturing various fabrics, availed Modvat/Cenvat credit on inputs and capital goods as per Cenvat Credit Rules, 2002. They received imported inputs/capital goods through courier agencies under notarized bill of entries. The Central Excise department raised objections during an audit regarding the Cenvat credit availed on notarized bill of entries.

2. A show cause cum demand notice was issued proposing to deny Cenvat credit on notarized courier bill of entries and impose a penalty. The Assistant Commissioner confirmed the demand and imposed a penalty under relevant sections of the Central Excise Act, 1944. The Commissioner (Appeals) upheld the decision, leading to the appeal before the Tribunal.

3. The appellants argued that Rule 7(1) of Cenvat Credit Rules allows availing credit based on various documents, including a Bill of Entry. They contended that a notarized certified copy of a bill of entry for imports through courier agents is eligible for Cenvat credit. They cited Tribunal decisions supporting their stance, including one specific case. The Tribunal agreed with the appellants, stating that the notarized copy falls within the category of a bill of entry, and as the receipt and use of inputs were not in dispute, the Cenvat credit cannot be denied. The appeal was allowed in favor of the appellant.