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2010 (11) TMI 63 - HC - Central ExciseCredit on endorsed bill of entry - inputs received by the assessee were duty paid inputs and that the said inputs have been actually used by the assessee in the manufacture of the final products - Held that - duty paid inputs are actually used in the manufacture of dutiable final products then credit of duty paid on inputs cannot be denied even if there is no endorsement of the bill of entry in favour of the assessee - claim of the assessee cannot be faulted - Appeal is dismissed
Issues:
1. Entitlement of credit on endorsed bill of entry without high sea sales/purchase. 2. Applicability of Notification No.16/94 (NT) dated 3031994. 3. Acceptance of endorsed bill of entry as duty paying document for Modvat Credit. Entitlement of credit on endorsed bill of entry without high sea sales/purchase: The appeal raised questions on whether the assessee can claim credit based on an endorsed bill of entry without high sea sales or purchase. The Revenue argued against allowing Cenvat credit on an endorsed bill of entry, citing Trade Notice No.57/1987. However, it was acknowledged that the inputs received were duty paid and used in manufacturing final products. Referring to a previous case, the Court established that if duty paid inputs are indeed used in manufacturing dutiable final products, denial of duty credit is inappropriate even without an endorsement on the bill of entry. Applicability of Notification No.16/94 (NT) dated 3031994: The dispute also centered around the applicability of Notification No.16/94 (NT) dated 3031994. The Court noted that this notification is of a clarificatory nature, encompassing circulars from 1986 to 1990. It was crucial to determine whether this notification applied in the case at hand, considering its coverage of the specified period and circulars. The Court's decision hinged on the interpretation and application of this notification in the context of the endorsed bill of entry issue. Acceptance of endorsed bill of entry as duty paying document for Modvat Credit: Another key issue was whether the endorsed bill of entry could serve as a valid duty paying document for Modvat Credit. The Court found that the bill of entry was indeed endorsed in favor of the assessee, with no evidence indicating that the original holder had already claimed duty credit. Consequently, the Tribunal's decision to allow the assessee's claim was upheld, leading to the dismissal of the appeal with no costs imposed. This decision emphasized the importance of proper documentation and utilization of duty paid inputs in claiming credit, irrespective of the endorsement status on the bill of entry.
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