2013 (5) TMI 35 - AT - Central Excise

Tribunal allows Cenvat credit on imported inputs, accepts reconstructed bill of entry.

BALKRISHNA INDUSTRIES LTD. Versus COMMISSIONER OF C. EX. & ST., JAIPUR-I

The Tribunal held in favor of the appellant, a manufacturer of tyres and tubes, regarding the validity of Cenvat credit on imported inputs. The Tribunal ... Waiver of pre-deposits - Demand of credit along with interest & penalties - Appellant avail Cenvat credit on imported inputs – Department contended (i) credit has not been taken on original triplicate copies and (ii) also credit as additional customs duty had been paid through DEPB and the same is not admissible. –Held that - Rule 9 of Cenvat Credit Rules in respect of imported goods, the bill of entry as the document for the purpose of taking Cenvat credit of additional customs duty paid and secondly whether Cenvat credit is admissible of the additional customs duty paid through DEPB tribunal made reliance on Seshasayee Paper and Boards Ltd. v. CCE, Salem – [2007 (8) TMI 53 - CESTAT, CHENNAI] and similar cases. Hence the requirement of pre-deposit is waived for hearing of the appeal and recovery thereof is stayed till disposal of the appeal. Issues:1. Validity of Cenvat credit on imported inputs.2. Requirement of original triplicate copy of bill of entry for Cenvat credit.3. Admissibility of Cenvat credit for additional customs duty paid through DEPB.Analysis:Issue 1: Validity of Cenvat credit on imported inputsThe appellant, a manufacturer of tyres and tubes, had taken Cenvat credit amounting to Rs. 15,22,034/- for certain imported inputs in February 2007. The department contended that the Cenvat credit was not taken on the original triplicate copies of bills of entry, the valid document for Cenvat credit on imported goods. A show cause notice was issued for recovery of the credit, interest, and penalty. The Joint Commissioner confirmed the Cenvat credit demand and imposed a penalty. On appeal, the Commissioner (Appeals) upheld the Joint Commissioner's order, leading to the current appeal and stay application.Issue 2: Requirement of original triplicate copy of bill of entry for Cenvat creditThe appellant argued that Rule 9 of Cenvat Credit Rules, 2004 does not specify that only the triplicate copy of the bill of entry is valid for availing Cenvat credit. They had lost the original triplicate copy and obtained a reconstructed bill of entry from the Customs house, which they deemed valid. The department opposed, stating that only the original duty paying document is acceptable for Cenvat credit. The Tribunal found the certified copy issued by the Assistant Commissioner to be a valid document for Cenvat credit, even though the triplicate copy was lost.Issue 3: Admissibility of Cenvat credit for additional customs duty paid through DEPBRegarding the admissibility of Cenvat credit for additional customs duty paid through Duty Entitlement Pass Book (DEPB), the Tribunal referred to previous judgments favoring the appellant. Citing cases like Seshasayee Paper and Boards Ltd. v. CCE, the Tribunal concluded that the appellant had a case for waiver of pre-deposit. Therefore, the requirement of pre-deposit of Cenvat credit demand, interest, and penalty was waived, allowing the appeal to proceed with a stay on recovery until its disposal.This comprehensive analysis of the legal judgment highlights the key issues, arguments presented by both sides, and the Tribunal's decision, providing a detailed understanding of the case.