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2021 (7) TMI 1231 - AT - Central ExciseCenvat credit - Bill of Entry in the name of the supplier of the raw material i.e. M/s Marico Limited - goods were received by the appellant as a job worker and used in the manufacture of goods on the job work basis - HELD THAT - Right from the Show Cause Notice the case of the department is only that whether the appellant is entitled for the Cenvat credit on the strength of Bill of Entry which is in the name of principal supplier M/s Marico Limited along with declaration given by M/s Marico Limited. There is no dispute about receipt, use of the goods supplied by M/s Marico Limited under the cover of Bill of Entry along with declaration in favour of the appellant. Even though the Bill of Entry is in the name of M/s Marico Limited but on the basis of declaration it is established that the material has been supplied to the appellant for job work, therefore, merely because Bill of Entry is bearing the name of M/s Marico Limited, Cenvat credit cannot be denied to the appellant. In the case of M/S TRICHEM LAB. (BOMBAY) PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, BELAPUR 2016 (6) TMI 616 - CESTAT MUMBAI , Tribunal has considered that on the basis of the Bill of Entry supported with declaration given by the importer is a valid document for availing the credit by the job worker - thus, appellant is entitled for Cenvat credit on the strength of Bill of Entry even though the same is in the name of M/s Marico Limited but with a declaration in favour of the appellant. Credit allowed - appeal allowed - decided in favor of appellant.
Issues involved:
Whether the appellant is entitled to Cenvat credit on the strength of a Bill of Entry in the name of the supplier, even though the goods were received by the appellant as a job worker. Analysis: Issue 1: Entitlement to Cenvat credit The appellant argued that the credit was rightfully availed as the Bill of Entry, although in the name of the supplier, was supported by a declaration enabling the appellant to receive the goods for job work. The appellant relied on the judgment in the case of Trichem Lab (Bombay) Pvt. Ltd. where a similar issue was resolved in favor of the appellant based on a declaration by the supplier. The appellant emphasized that the procedure for movement of job work goods was not relevant to the case. On the other hand, the Revenue representative reiterated the findings of the impugned order and cited the decision of the Hon'ble Bombay High Court in a related case. Issue 2: Consideration of evidence Upon reviewing the submissions and records, the Tribunal found that the department's case focused solely on whether the appellant was entitled to Cenvat credit based on the Bill of Entry in the name of the principal supplier, M/s Marico Limited, supported by a declaration. The Tribunal noted that there was no dispute regarding the receipt and use of the goods by the appellant for job work, even though the Bill of Entry bore the supplier's name. The Tribunal referenced a previous case involving a similar situation where the Tribunal allowed credit based on a declaration by the supplier. Issue 3: Legal basis for availing credit The Tribunal considered Circular No. 179/13/96-CX, which initially required endorsement by the Proper Officer of Customs on the Bill of Entry for credit availment but later dispensed with this requirement. The Tribunal concluded that the importer's endorsement sufficed for credit availment based on the Circular. Citing the judgment in the case of Trichem Lab (Bombay) Pvt. Ltd., the Tribunal held that the Bill of Entry supported by a declaration from the importer was a valid document for availing credit by the job worker, thus allowing the appeal and setting aside the impugned orders. In conclusion, the Tribunal ruled in favor of the appellant, stating that they were entitled to Cenvat credit on the strength of the Bill of Entry, even though it was in the name of the supplier, M/s Marico Limited, supported by a declaration. The judgment emphasized the validity of the document and the sufficiency of the importer's endorsement for credit availment, in line with relevant Circulars and legal precedents.
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