2016 (2) TMI 254 - AT - Central Excise

Cenvat credit on the basis of the endorsed bill of entry - Is endorsed bill of entry a valid document for claiming cenvat credit? - Held that - In this case it is not disputed the receipt of the material and duty paid on that. Further as find that in the case of Akzo Nobel Coatings (India) Ltd. vs. CCE, Bangalore reported in 2013 2012 (11) TMI 1021 - CESTAT BANGALORE the appellant is entitled for cenvat credit on the basis of endorsed bill of entry which, is a valid document for availing cenvat credit and therefore allow the appeals by setting aside the impugned order. - Decided in favour of assessee

Summary

Issues:
- Validity of availing cenvat credit against endorsed bill of entry under Rule 9(1) of Cenvat Credit Rules, 2004.

Analysis:
The appeals were directed against an order-in-appeal upholding an order-in-original regarding the appellant's entitlement to cenvat credit against endorsed bill of entry for imported materials. The appellant, a manufacturer of excisable goods, received materials through an associated company and availed cenvat credit. The lower excise authorities disputed the credit, leading to show cause notices and subsequent confirmation of demand, interest, and penalty. The appellant argued that the endorsed bill of entry is a valid document under Rule 9(1) of the Cenvat Credit Rules, 2004, citing relevant judgments. The Commissioner (Appeals) upheld the order-in-original, prompting the appeals before the Tribunal.

The appellant contended that the status of a bill of entry remains unchanged after endorsement and that Rule 9(1)(c) does not specify that a bill of entry must not be endorsed to avail cenvat credit. The appellant received the inputs, discharged duty liability, and the entire consignment was transferred to them, justifying the endorsement. The Tribunal considered the arguments and cited the case of Akzo Nobel Coatings (India) Ltd. vs. CCE, Bangalore, where the Tribunal allowed cenvat credit based on endorsed bills of entry. The Tribunal noted that the Department had no evidence to deny credit based on the endorsed bill of entry, emphasizing the receipt and utilization of imported goods for manufacturing excisable products.

After analyzing the precedents and arguments, the Tribunal concluded that the appellant is entitled to cenvat credit against the endorsed bill of entry as a valid document for availing credit. The Tribunal set aside the impugned order, allowing the appeals in favor of the appellant. The judgment was pronounced on 22.12.2015 by the Tribunal member.