Cenvat credit on separately shown design and testing charges for imported moulds was held admissible.

Cenvat credit of CVD paid on design and testing charges separately shown in the bill of entry for imported moulds was held admissible. The customs assessment at the time of import was not disputed, and the mere segregation of those charges in the import documents did not show that they fell outside the assessable value of the moulds or that the duty paid on them was ineligible for credit. On that basis, denial of credit was not justified and the appellant's claim was accepted.

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Issues: Whether Cenvat credit of CVD paid on design and testing charges shown separately in the bill of entry on import of moulds was admissible.

Analysis: The assessment made by the Customs authorities at the time of import was not disputed by the department, and there was no basis to deny credit merely because the testing charges were shown separately. The separation of the amount in the import documents did not establish that the charges were outside the assessable value of the moulds or that the duty paid thereon was ineligible for credit.

Conclusion: The credit was admissible and the appellant's contention was accepted.

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