Cenvat credit cannot be denied on technical ament defects when substantive receipt of capital goods is established.

Cenvat credit on capital goods could not be denied where the bill of entry was in the name of another unit of the same assessee, so long as the goods were actually received and the essential particulars were available. A purely technical objection to the document did not defeat substantive entitlement, and the alleged mismatch in description and quantity could not sustain denial when it was not the basis of the show cause notice. The explanation for the weight variation was treated as reasonable, with no verification showing that the goods received were different from the imported goods. The demand and penalty were therefore unsustainable.

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Issues: Whether cenvat credit on capital goods could be denied merely because the bill of entry stood in the name of another unit of the same assessee, and whether the alleged discrepancy in description and quantity justified denial of credit and penalty.

Analysis: The bill of entry contained the essential particulars, and the only objection in the show cause notice was that it was not in the name of the appellant. The dispute was materially covered by the principle that credit cannot be denied solely because documents are issued in the name of another unit of the same company when the goods are received by the assessee and the substantive requirements are otherwise met. The alleged mismatch in description and quantity was not the foundation of the notice, and the explanation that the weight increased because water was added was found reasonable. There was no verification to show that the goods received were not the imported goods at all.

Conclusion: Cenvat credit could not be denied on the stated grounds, and the penalty and demand were unsustainable.

Final Conclusion: The impugned order was set aside and the appeal was allowed.

Ratio Decidendi: Credit cannot be denied on a purely technical objection to the document when the substantive receipt of goods and the essential particulars are established, and a new ground not forming part of the show cause notice cannot be used to sustain denial.

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