The Ahmedabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that even on the strength of the endorsed bill of entry, CENVAT credit is admissible.
In this case, the revenue has appealed against the order passed by the adjudicating authority, which ruled in favour of the assessee.
The issue, in this case, was whether the respondent was entitled to Cenvat credit on the strength of the endorsed bill of entry.
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The counsel on behalf of the department submitted that during the relevant period, the endorsed bill of entry is not a valid document for availing the Cenvat credit in terms of Rule 9 of the Cenvat Credit Rules, 2004.
The counsel on behalf of the assessee submitted that the appellant claimed credit based on the bill of entry and the importer’s sale invoice, including duty details. The Adjudicating Authority, considering this, allowed the Cenvat credit.
The bench relied on the judgment of CESTAT Ahmedabad in the case of Khushboo beauty care 2021 (7) TMI 1231 in which the CESTAT held that “if the Bill of Entry supported with declaration given by the importer is a valid document for availing the credit by the job worker, therefore, in view of my above observation coupled with the judgment in the case of Trichem Lab (Bombay) Pvt. Ltd.(supra), I am of the clear view that the appellant is entitled for Cenvat credit on the strength of Bill of Entry even though the same is in the name of M/s Marico Limited but with a declaration in favour of the appellant. Accordingly, the impugned order is set aside. The appeal is allowed.”
Thus, by relying on the above judgment, concluded that even on the strength of the endorsed bill of entry, CENVAT credit is admissible.
The bench noted that the respondents were issued an importer invoice, which is also a valid document for availing the cenvat credit in terms of Rule 9 of the Cenvat Credit Rules, 2004.
The CESTAT, comprising C.L. Malahar (Technical Member) and Ramesh Nair (Judicial Member), upheld the imputed order.
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