Cenvat credit eligibility on received and used inputs supported waiver of pre-deposit despite Bills of Entry name mismatch

Pre-deposit and recovery stay were considered under the proviso to Rule 9(2) of the Cenvat Credit Rules, 2004, which allows credit where duty has been paid on the inputs, the inputs have been received in the factory, and they have been used in the manufacture of final products cleared on payment of duty. The record showed these conditions were satisfied and recorded in the adjudication order, so the mismatch in the name on the Bills of Entry was not treated as a reason to insist on pre-deposit at the admission stage. Waiver of pre-deposit was granted and recovery was stayed pending appeal.

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Issues: Whether waiver of pre-deposit and stay of recovery should be granted where the assessee had received the inputs in its factory, used them in manufacture, and cleared the final products on payment of duty, but the import documents stood in the name of another entity.

Analysis: The relief stage was governed by the proviso to Rule 9(2) of the Cenvat Credit Rules, 2004, which permits credit when the authority is satisfied that duty has been paid on the inputs, the inputs have been received in the factory, and they have been used in the manufacture of final products cleared on payment of duty. The record showed that these factual requirements had been satisfied and were already noted in the adjudication order. On that basis, the discrepancy in the name on the Bills of Entry was not treated as a ground to insist on pre-deposit at the admission stage.

Conclusion: Waiver of pre-deposit was granted and recovery of the demanded dues was stayed during the pendency of the appeals.

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