2002 (12) TMI 161 - AT - Central Excise

Summary

Issues:
- Availability of Cenvat Credit on duty paid inputs based on an endorsed Bill of Entry.

Analysis:
The appeal questioned whether M/s. Mark Auto Indus. Ltd. could claim Cenvat Credit on duty paid inputs using an endorsed Bill of Entry. The Appellants argued that Maruti Udyog Ltd. supplied them with moulds and dyes for manufacturing motor vehicle parts, and the endorsed Bill of Entry indicated that Maruti Udyog Ltd. would not avail Cenvat Credit, as per Customs Circulars. The Commissioner denied the credit, citing that the endorsed Bill of Entry was not a prescribed document. The Appellants relied on Tribunal decisions and Circulars to support their claim.

The Revenue contended that the Bill of Entry lacked endorsement, and the Credit was based on a separate letter from Maruti Udyog Ltd. The Revenue argued that Circulars regarding sale from docks did not apply as the Appellants were manufacturing on behalf of Maruti Udyog Ltd. They referenced Circulars about Bill of Entry in the name of the manufacturer's office and sister unit transfers, which they deemed inapplicable to the case. The Revenue also cited the Balmer Lawrie case.

The Tribunal examined the submissions and found that the goods were directly sent to the Appellants based on Customs endorsement on Maruti Udyog Ltd.'s letter. The letter contained necessary details for availing Modvat credit. The Tribunal agreed with the Appellants that the Bill of Entry was endorsed as per Circular. It differentiated Circular provisions for Bill of Entry in the manufacturer's name and diversion of goods, concluding that the Circular applicable to the case allowed for credit endorsement. The Tribunal ruled in favor of the Appellants, citing Circular compliance and Tribunal precedents on Modvat credit availability even without a sale.

In conclusion, the Tribunal upheld the appeal, setting aside the Commissioner's decision and allowing the Cenvat Credit claim based on the endorsed Bill of Entry. The judgment emphasized adherence to Circular provisions, Tribunal decisions on Modvat credit, and distinguished applicability of Circulars based on specific scenarios, ultimately granting relief to M/s. Mark Auto Indus. Ltd.