2014 (3) TMI 751 - AT - Central Excise

Denial of Cenvat Credit - Bill of entry was endorsed in favour of the Thane unit by the Pitampur unit - Validity of endorsed of bill of entry - Held that - there is no dispute that the imported consignments has not suffered CVD or the said consignment has not been received at the appellant s premises at Thane. The only dispute is that the bill of entry was endorsed by the Pitampur unit to the Thane unit, since the foreign supplier had indicated the addressed of the Pitampur unit in the relevant documents. Since bill of entry is a specified document, on the strength of which the Cenvat Credit can be availed, an endorsed bill of entry is also an equally valid document for availing credit. By endorsement only the name of the consignee is changed - credit can be availed on the strength of endorsed bill of entry also - Following the decision of Eupec-Welspun Pipe Coatings India Ltd. case 2009 (12) TMI 561 - GUJARAT HIGH COURT - Decided in favour of assessee.

Summary

Issues:
Denial of Cenvat Credit on endorsed bill of entry.

Analysis:
The appeal challenged the Order-in-Appeal upholding the denial of Cenvat Credit, interest, and imposing a penalty on the appellant. The appellant imported berol powder from Singapore, with import documents filled in the name of the SEZ unit at Pitampur, Indore, but meant for the unit at Pali, Shahapur, Dist Thane. The endorsed bill of entry was the only ground for denial of Cenvat credit. The consultant argued that the appellant was entitled to credit based on the endorsed bill of entry, citing precedents where Cenvat Credit was allowed on endorsed bills of entry. The Revenue, on the other hand, relied on a case where endorsed invoices were deemed irrelevant for credit. The Tribunal noted that the consignment had not incurred CVD and had reached the Thane unit, with the only dispute being the endorsement of the bill of entry. Considering the bill of entry as a specified document for credit availment, the Tribunal held that an endorsed bill of entry was valid for credit, as endorsed documents only changed the consignee's name. Citing previous decisions and the Gujarat High Court's ruling, the Tribunal concluded that credit could indeed be taken based on an endorsed bill of entry, overturning the impugned order and allowing the appeal with any consequential relief as per the law.