2016 (11) TMI 998 - AT - Central Excise

Denial of CENVAT credit availed on photo copies of the courier bill of entry - The consolidated bill of entry covering many items imported by various importers is filed by the courier and the same original bill of entry cannot be given to every importer - Held that - the CBEC vide Circular No.56/95 prescribed the mechanism to solve such issues arising due to import by courier. Cenvat Credit is as goods as cash and allowing credit on simple photo copies can be misused. The original documents have their sanctity and it is not a case where there was no option available to the appellant. The CBEC had prescribed the method which was available to the appellant for availing the said credit. I find that decision of the Tribunal in the case of Tata Precision Industries (India) Ltd. 2005 (4) TMI 492 - CESTAT, NEW DELHI is exactly the similar circumstances and applicable to the current situation. Appeal dismissed - decided against appellant.

Summary

Issues:
- Denial of credit availed on photo copies of the courier bill of entry.

Analysis:
1. The appellant, M/s.Mascot Global Pvt. Ltd., was issued a notice seeking to deny credit availed on photo copies of the courier bill of entry. Despite the absence of representation, the appellant submitted a written submission relying on a previous decision in their favor.

2. The learned AR representing the respondent relied on the Tribunal's decisions in the cases of Tata Precision Industries (India) Ltd. and Niton Valve Industries Pvt. Ltd. He emphasized the requirement for a separate bill of entry for claiming Cenvat Credits in the case of courier imports, citing circulars and regulations issued by CBEC to address such procedures.

3. The Tribunal examined the order-in-original, which detailed the procedures for importers to become eligible for Cenvat Credits in the case of courier imports. Circulars issued by CBEC prescribed guidelines for claiming Modvat (now Cenvat) credit, emphasizing the necessity of filing a normal bill of entry for such claims.

4. The Tribunal noted that CBEC had provided mechanisms through circulars to address issues related to import by courier, highlighting the importance of original documents over photo copies to prevent misuse of Cenvat Credits. The decision in the case of Tata Precision Industries (India) Ltd. was deemed applicable to the current situation, leading to the dismissal of the appeals.

5. Ultimately, the Tribunal dismissed the appeals, emphasizing the significance of following prescribed procedures for availing Cenvat Credits in cases of courier imports. The judgment was pronounced on 13/04/2016 by Mr. Raju, Member (Technical) of the Appellate Tribunal CESTAT MUMBAI.