2016 (1) TMI 1278 - AT - Central Excise

CENVAT Credit of CVD - credit availed on the basis of photocopy of courier bill of entry - whether courier bill of entry is a valid document for clearance of any imported goods u/r 9 of CCR 2004? - Held that - similar issue decided in the case of CONTROLS & DRIVES COIMBATORE (P) LTD. Versus COMMISSIONER OF C. EX. 2007 (11) TMI 57 - CESTAT CHENNAI where it was held that photocopy of B/E cannot be said invalid documents to avail credit - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Denial of CENVAT Credit on xerox copy of courier bill of entry.

Analysis:
The appeal was filed against the Order-in-Appeal denying the benefit of CENVAT Credit on a xerox copy of a courier bill of entry. The appellant had wrongly availed CENVAT Credit of CVD on imported inputs based on various courier bill of entry documents issued by the customs department. Upon audit in November 2007 for the period April 2004 to March 2007, discrepancies were noted, leading to the appellant paying the demanded amount and interest. Subsequently, a show-cause notice was issued, and the demand was confirmed by the AC and upheld by the Commissioner (Appeals), prompting the appellant to file the present appeal.

The appellant argued that as per the Bill of Entry Regulation, 1976, a courier bill of entry is a valid document for the clearance of imported goods, supported by Regulation 5(3) proviso of the Courier Imports and Exports Clearance Regulation 1988. It was contended that the imported inputs were indeed received and utilized in the manufacturing process of the final product, which was cleared after payment of duty. The appellant cited judgments such as Tecumseh Products India P. Ltd. 2008 (21) ELT 129 and Controls & Drives Coimbatore P. Ltd. 2008 (222) ELT 470 to support their case. On the other hand, the ld. AR reiterated the findings of the lower authorities.

The crucial issue to be determined was whether a courier bill of entry qualifies as a valid document for claiming CENVAT Credit under Rule 9 of the CENVAT Credit Rules, 2004. After reviewing the cited judgments, the Member (Judicial) concluded that the appellant's case aligned with the precedents referenced, leading to the allowance of the appeal. Consequently, the impugned order was set aside, with any consequential relief to follow.