Input credit on imported grinding wheels upheld despite bill of entry mismatch where factory use was established.

Credit on imported grinding wheels was treated as admissible input credit, following earlier Tribunal rulings recognising such goods as eligible inputs. The Tribunal also held that credit could not be denied merely because the bill of entry described the registered office as recipient, where the goods were in fact used in the factory. Relying on Board Circular No. 211/45/96-CX dated 14-5-1996, it accepted that such a technical mismatch does not justify disallowance when the substantive use condition is satisfied. The order allowing credit was therefore upheld and the Revenue's challenge failed.

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Issues: Whether credit was admissible on imported grinding wheels as inputs, and whether credit could be denied because the unit of consumption differed from the description in the bill of entry.

Analysis: The Tribunal noted that the admissibility of grinding wheels as eligible inputs had already been recognized in prior Tribunal decisions. On the bill of entry objection, the Tribunal relied on Board Circular No. 211/45/96-CX dated 14-5-1996, which directed that credit should not be disallowed where the bill of entry showed the registered office as recipient and the goods were used in the factory. The assessee's case was found to be on a stronger footing than the situation covered by the circular.

Conclusion: Credit was admissible and the objection based on the bill of entry was not sustainable. The Revenue's appeal failed.

Final Conclusion: The order allowing credit was upheld and the Revenue's challenge was rejected.

Ratio Decidendi: Eligibility of credit cannot be denied where the goods are recognized as admissible inputs and a technical discrepancy in the bill of entry does not justify disallowance when the goods are used in the factory, especially in light of the governing Board circular.

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