Cenvat credit on transferred imported inputs allowed where absence of bill of entry endorsement caused no double-credit risk.

Cenvat credit on imported inputs was held admissible to the transferee unit despite the bills of entry remaining in the transferor's name and not being endorsed. The only objection was the absence of endorsement, but the circular relied on by Revenue operated as a safeguard against double credit and did not impose an absolute bar or make endorsement mandatory in every case. As there was no evidence that the goods failed to reach the factory, were diverted, were unused in manufacture, or had generated double credit, denial of credit was not justified.

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Issues: Whether Cenvat credit on imported inputs was admissible to the transferee unit when the bills of entry stood in the name of the transferor and were not endorsed in the name of the transferee.

Analysis: The only objection was non-endorsement of the bills of entry. The circular relied upon by Revenue prescribed a safeguard to prevent double availment of credit, but it did not create a complete bar on transfer of inputs or make endorsement mandatory in every case. The record contained no evidence that the goods did not reach the appellant's factory, were diverted elsewhere, were not used in manufacture, or that credit had been claimed twice on the same goods.

Conclusion: Cenvat credit was admissible and denial of credit was not justified.

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