Cenvat credit on manufacturer's own invoice upheld where duty-paid inputs were sent to a job worker and used in manufacture.

A manufacturer was entitled to Cenvat credit where inputs were cleared on payment of duty to a job worker, processed, received back under the relevant notification, and used in further manufacture. The only objection concerned the duty-paying document, but the manufacturer's own invoice was accepted as a valid document in these facts because duty payment and subsequent use of the inputs were undisputed. The department could not apply a different standard merely because the credit claim was based on the manufacturer's invoice. The credit was therefore admissible.

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Issues: Whether the manufacturer was entitled to take Cenvat credit on the basis of its own invoice evidencing duty paid on inputs cleared to a job worker for processing and received back for further manufacture.

Analysis: The only objection was to the duty-paying document. It was not disputed that the inputs had been cleared on payment of duty, sent to the job worker for mercerization, received back under the relevant notification, and used in the manufacture of final products. The invoice issued by the manufacturer itself could serve as a valid duty-paying document for Cenvat credit purposes in these facts, and the department could not adopt a different standard merely because the credit was claimed on the manufacturer's own invoice.

Conclusion: The credit was admissible and the assessee's claim was upheld.

Ratio Decidendi: Where duty has been paid on inputs cleared to a job worker and the inputs are received back for use in manufacture, the manufacturer's own invoice can constitute a valid duty-paying document for Cenvat credit if the underlying duty payment and use of inputs are undisputed.

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