CENVAT credit cannot be denied on a technical defect in the duty-paying document when duty payment and use are undisputed.

CENVAT credit of countervailing duty cannot be denied merely because Customs Rule 57E certificates were not treated as admissible duty-paying documents, where the duty paid on imported components and their use in manufacture were undisputed. The article states that, in the absence of a similar provision in the CENVAT Credit Rules, a purely technical objection to the form of the supporting certificate does not defeat substantive entitlement to input credit. On that basis, the assessee was entitled to waiver of pre-deposit and stay of recovery of the disputed CVD amount.

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Issues: Whether CENVAT credit of countervailing duty could be denied merely because Rule 57E certificates issued by the Customs authorities were not treated as admissible duty-paying documents, in the absence of an analogous provision in the CENVAT Credit Rules.

Analysis: The duty on the imported components was not in dispute, nor was their use in the assessee's manufacture. The objection was only that the certificates were issued under a provision not in force during the relevant period and that no similar provision existed in the CENVAT Credit Rules. Where the substantive requirements for credit are fulfilled, denial of the credit solely on a technical objection to the supporting certificate is not justified.

Conclusion: The assessee was entitled to waiver of pre-deposit and stay of recovery in respect of the disputed CVD amount.

Ratio Decidendi: Substantive entitlement to input credit cannot be refused on a purely technical objection to the form of the duty-paying document when payment of duty and use of the inputs are undisputed.

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