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2024 (12) TMI 736 - AT - Central ExciseEntitlement to Cenvat credit on the strength of an endorsed bill of entry - Rule 9 of Cenvat Credit Rules, 2004 - HELD THAT - There is catena of judgments wherein this issue has been considered and it was held that even on the endorsed bill of entry, the cenvat credit is admissible. In the case of M/s. Darshan industries 2003 (9) TMI 696 - CESTAT, MUMBAI , the Hon ble Tribunal has held that ' We are in complete agreement with the view taken by the Rajasthan High Court in holding that on the basis of the endorsed invoices issued by the intermediatory purchaser and the invoices issued by the manufacturer, the assessee shall be entitled to claim the credit on the goods, on which the manufacturer has paid the duty.' In view of the judgment, it is settled that even on the strength of endorsed bill of entry, cenvat credit is admissible. It is found that it is not only the endorsed bill of entry but the respondent were issued importer invoice also which is otherwise a valid document for availing the cenvat credit in terms of Rule 9 of Cenvat Credit Rules, 2004. Therefore, since, the respondent are also receiving the importer s invoice, the cenvat credit is admissible. Accordingly, the view that there is absolutely no infirmity in the impugned order. Hence, the impugned order is upheld - Revenue s appeal is dismissed.
Issues Involved:
1. Whether the respondent is entitled to Cenvat credit on the strength of an endorsed bill of entry. Issue-Wise Detailed Analysis: 1. Entitlement to Cenvat Credit on Endorsed Bill of Entry: The primary issue in this case is whether the respondent can claim Cenvat credit based on an endorsed bill of entry. The Revenue argued that during the relevant period, an endorsed bill of entry was not a valid document for availing Cenvat credit under Rule 9 of the Cenvat Credit Rules, 2004. The Revenue contended that the Commissioner erroneously allowed the Cenvat credit based on such a document. In contrast, the respondent's counsel argued that the Cenvat credit was not solely based on the endorsed bill of entry. The importer also issued a sale invoice containing all necessary details, including the duty paid on the goods. The adjudicating authority considered this fact and allowed the Cenvat credit. The respondent further argued that the Revenue's appeal focused only on the endorsed bill of entry, neglecting the importer's invoice, which is also a valid document for availing Cenvat credit under Rule 9 of the Cenvat Credit Rules, 2004. The respondent cited various judgments supporting the admissibility of Cenvat credit on endorsed bills of entry. Upon careful consideration, the Tribunal found that there is a substantial body of judgments affirming that Cenvat credit is admissible even on an endorsed bill of entry. Notable cases include M/s. Darshan Industries and Union of India v. Rajasthan Spinning & Weaving Mills Ltd., which established that Modvat credit is not restricted to the immediate purchaser from the manufacturer. It can be availed by the person who uses the duty-paid goods as inputs in manufacturing, provided the duty has not been claimed by another party. The Rajasthan High Court ruled that endorsed invoices issued by an intermediary purchaser and invoices from the manufacturer are sufficient for claiming credit, provided the duty has been paid by the manufacturer. Additionally, the Tribunal referenced the case of Khushboo Beauty Care, where it was determined that Cenvat credit could not be denied merely because the bill of entry was in the name of a principal supplier. The Tribunal emphasized that the receipt and use of goods were not disputed, and the importer's endorsement was sufficient for availing credit. The Tribunal concluded that the respondent is entitled to Cenvat credit on the strength of the endorsed bill of entry. Moreover, since the respondent also received the importer's invoice, which is a valid document under Rule 9 of the Cenvat Credit Rules, 2004, the credit is admissible. Consequently, the Tribunal found no infirmity in the impugned order and upheld it, dismissing the Revenue's appeal. The judgment was pronounced in open court on December 12, 2024, affirming the respondent's entitlement to Cenvat credit based on both the endorsed bill of entry and the importer's invoice.
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