2018 (1) TMI 164 - AT - Central Excise

CENVAT credit - whether the appellants are eligible to avail credit of Cenvat credit/Customs duty paid on courier bills of entry? - Held that - when there is no dispute with regard to duty paid on the receipt of goods, the credit cannot be denied for the reason that the bill of entry is a photocopy when the import is by courier - reliance placed in the case of Precision Electronics Ltd. Versus Commissioner of Central Excise, Noida 2015 (7) TMI 1228 - CESTAT NEW DELHI - credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Availment of Cenvat credit based on Xerox copies of courier bills of entries
- Validity of the denial of credit by the department
- Application of relevant case laws in determining eligibility for credit

Analysis:
The case involved the appellant, engaged in manufacturing Automobile Wiring Harness, who availed Cenvat credit of ?12,45,701 based on Xerox copies of courier bills of entries from April 2010 to June 2014. The department alleged the Xerox copies were not proper documents for credit. The appellant argued that in emergency imports, raw materials were imported through courier with consolidated bills of entry from the courier agency, attested and reflecting customs duties paid. The appellant believed they were eligible for credit as the goods were received outside the factory and duties were paid. The department had audited without objections previously. The appellant cited various cases supporting their position. The department, however, referred to a circular advising filing normal bills of entry for credit. They relied on a case where credit on a carbon copy of a challan was denied.

The main issue was whether the appellant could avail Cenvat credit on courier bills of entry. The Tribunal noted that Rule 9 does not classify bills of entry, making the distinction by Revenue imaginary. Relying on precedent, the Tribunal held that when duty payment on goods was undisputed, credit could not be denied due to the nature of the bill of entry, especially in courier imports. The Tribunal emphasized the authenticity of courier bill copies, duly authenticated, and extended credit based on the special nature of such imports. The decision cited by the department regarding credit on a carbon copy of a challan was deemed irrelevant to the present case, where credit was based on courier bill copies due to consolidated entries. Consequently, the denial of credit was deemed unjustified, and the appeal was allowed with consequential relief.

In conclusion, the Tribunal ruled in favor of the appellant, allowing them to avail Cenvat credit on the Xerox copies of courier bills of entries. The decision was based on the authenticity of the documents and the nature of the imports, as supported by relevant case laws. The denial of credit by the department was deemed unjustified, and the appellant was granted relief in this matter.