Input duty credit cannot be denied merely because packing and forwarding charges are shown separately in the invoice.

Credit of duty on inputs could not be denied merely because packing and forwarding charges were shown separately in the supplier's invoice. The invoices separately reflected ancillary charges and the duty component, and the assessee claimed only the duty actually paid on inputs used in the finished products. Rule 57A gave no basis to disallow credit on that ground alone, because the decisive factor was actual duty paid on the inputs rather than invoice segregation of other charges. The credit was therefore admissible and the disallowance unsustainable.

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Issues: Whether credit of duty on inputs could be denied merely because packing and forwarding charges were shown separately in the supplier's invoice.

Analysis: The invoices showed packing and forwarding charges separately and the duty component separately. The assessee had availed credit only of the duty actually paid on the inputs used in the finished products. Rule 57A did not provide any basis to disallow such credit solely because ancillary charges were separately indicated in the invoice. The decisive factor was the actual duty paid on the inputs, not the segregation of other charges in the invoice.

Conclusion: Credit of the duty actually paid on the inputs was admissible, and the disallowance was unsustainable.

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