Cenvat credit on endorsed bill of entry upheld where duty-paid inputs were used in manufacturing dutiable goods.

Cenvat credit was treated as admissible where duty-paid inputs were actually used in the manufacture of dutiable final products, even though the bill of entry was only endorsed and not formally endorsed in favour of the assessee. The Court applied the principle that credit on duty-paid inputs cannot be denied on a mere technical objection when the record does not show that the original holder of the bill of entry had already taken the credit. On that basis, the Tribunal's allowance of the claim was found justified and the assessee's entitlement to credit was upheld.

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Issues: Whether Cenvat credit could be denied on the strength of an endorsed bill of entry when the inputs were duty paid and actually used in the manufacture of the final products.

Analysis: The inputs received by the assessee were duty paid and had been actually used in the manufacture of dutiable final products. The Court relied on the principle that credit of duty paid on inputs cannot be denied merely because there was no endorsement of the bill of entry in favour of the assessee, particularly when the record did not show that the original holder of the bill of entry had availed the credit. In such circumstances, the Tribunal's view allowing the claim was found to be justified.

Conclusion: Cenvat credit on the endorsed bill of entry was admissible and the assessee's claim was upheld.

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