2007 (11) TMI 57 - AT - Central Excise

Goods imported and took credit of CVD paid on basis of photocopy of courier B/E As goods were imported by 4-5 importers, original documents might not be available to all importers So photocopy of B/E cannot be said invalid documents to avail credit Credit allowed

Summary

Issues: Denial of CENVAT credit based on the use of photocopy of courier Bills of Entry.

In this judgment by the Appellate Tribunal CESTAT CHENNAI, the Member (J) addressed applications for waiver of predeposit and stay of recovery. Despite no representation from the appellant and no request for adjournment, the Member decided to dispose of the applications due to prior instances of non-representation. Upon reviewing the records, it was determined that the appeals could be finalized without further delay. The case involved the appellant importing electronic components and claiming CENVAT credit on CVD paid based on photocopies of courier Bills of Entry. The lower authorities had denied the credit, citing the inadmissibility of the documents for CENVAT credit purposes.

The lower appellate authority noted that the department did not contest the receipt and utilization of inputs by the appellant in manufacturing their final product, nor the duty-paid nature of the goods. The department's objection was solely on the grounds of the credit being taken using an invalid document. However, Bills of Entry confirming CVD payment were considered admissible for CENVAT credit purposes. The Tribunal acknowledged that in cases where a consolidated Bill of Entry was required due to small import values, importers were forced to use photocopies of the Bill of Entry for claiming CENVAT credit. Given that the facts were undisputed, the Tribunal concluded that the denial of CENVAT credit solely based on the use of a photocopy instead of the original document was unjustified.

Therefore, the impugned orders denying the CENVAT credit were set aside, and the appeals were allowed by the Tribunal. The judgment emphasized the admissibility of photocopies of Bills of Entry for claiming CENVAT credit, especially in situations where the original documents were not readily available to importers due to procedural requirements.