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2013 (2) TMI 518 - AT - Central ExciseCVD credit - Denial of Cenvat Credit on the strength of the Endorsed Bills of Entry - Differential value of the commercial invoice and value appearing in the Bills of Entry - Unit of the assessee is situated at Bellary imported M.S scrap - Later on it was decided to send it to Salem unit of the assessee - The goods were sent to assessee s factory, The Bills of Entry were endorsed in the names of the assessee - The assessee took the credit of CVD paid by them as Cenvat credit - Held that - Assessee are entitled for credit of the duty paid by them. Though, in this case duty has been paid by the Bellary Unit, they have not taken credit which fact has been verified by the adjudicating authority. Therefore, the applicants are entitled to take credit on the strength of the duty paid documents of 9 Bills of Entry. In view of this observation we find the applicants have made out a case for 100% waiver. Waiver allowed
Issues:
Seeking waiver of pre-deposit of Cenvat Credit due to differential value in commercial invoice and Bills of Entry. Analysis: The Applicants sought waiver of pre-deposit amounting to Rs.11,19,681 due to the denial of Cenvat Credit based on the differential value between the commercial invoice and the Bills of Entry. The case involved the import of M.S scrap to the Applicant's unit in Bellary, with subsequent transfer to the Salem unit. The Applicant claimed Cenvat credit based on the CVD paid, endorsed in the Bills of Entry. However, a Show Cause Notice challenged this credit claiming discrepancy in the value of goods between the commercial invoice and Bills of Entry. The differential duty element was denied, leading to a confirmed demand. Upon hearing both parties and examining the records, it was established that the duty had been paid by the Bellary Unit, but credit had not been claimed. The adjudicating authority verified this fact, concluding that the Applicants were indeed entitled to credit based on the duty paid documents of the Bills of Entry. Consequently, the Tribunal found merit in the Applicant's case for a 100% waiver of the pre-deposit requirement. Thus, the Tribunal waived the pre-deposit of the entire duty, interest, and penalty during the appeal's pendency, in favor of the Applicants.
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