The Mumbai Bench of Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) allowed the CENVAT credit claim despite the bill of entry not being in the appellant’s name, citing that the importer’s authorization was deemed a valid document.
Softesule Pvt. Ltd., the appellant claimed CENVAT credit for goods imported by Ranbaxy Laboratories Ltd., who had authorized the appellant to take delivery of the goods for use in manufacturing on a job-work basis.
The claim was denied by the authorities because the bill of entry was issued in the name of Ranbaxy Laboratories Ltd., rather than in the appellant’s name, Softesule Pvt. Ltd.
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The appellant appealed against the denied order before the Mumbai Bench of CESTAT arguing that the the original importer, Ranbaxy Laboratories Ltd., gave authorization to the appellant and they have complied with Rule 9 (i) (c) of Cenvat Credit Rules, 2004.
The appellant’s counsel relied on the Ahmedabad tribunal ruling in the case of Khushboo Beauty Care to support their claim.
On the contrary, the revenue’s counsel argued that since the bill of entry was not in the name of the appellant, they were not entitled to claim CENVAT credit under the applicable rules.
A single bench led by Ashok Jindal (Judicial Member) heard both sides’ arguments and noted that Ranbaxy Laboratories Ltd. had duly authorized the appellant to take delivery of the imported goods for job work. Thus, they complied with Rule 9 of the Cenvat Credit Rules, 2004.
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The tribunal referred to the Ahmedabad tribunal ruling in the case of Khushboo Beauty Care where it was held that a bill of entry supported by authorization from the importer was a valid document for claiming credit by a job worker.
Therefore, the tribunal set aside the impugned order. The appellant’s appeal was allowed with consequential relief.
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