Modvat credit on endorsed bill of entry denied where endorsement was not made by head office to a sub-office or unit.

Modvat credit was held not admissible on an endorsed bill of entry where the endorsement was not made by the importer's head office in favour of a sub-office or unit. The goods were received on the basis of the endorsed bill of entry, not the commercial invoice, and the matter was treated as covered by the Tribunal's earlier ruling limiting credit on such documents to endorsements made by head office to its own sub-office or unit. The disallowance was upheld.

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Issues: Whether Modvat credit was admissible on the strength of an endorsed bill of entry in the facts of the case.

Analysis: The endorsed bill of entry was not endorsed by the importer's head office in favour of a sub-office or unit; the goods were received on the strength of the endorsed bill of entry and not on the commercial invoice. The issue was treated as covered by the Tribunal's earlier ruling that Modvat credit is not available on such endorsed bills of entry, save where the endorsement is made by the head office in favour of its sub-office or unit.

Conclusion: Modvat credit was not admissible on the endorsed bill of entry, and the disallowance was upheld.

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