Cenvat credit cannot be denied for delayed RG-23A entry when inputs were received, accounted for, and used in manufacture.

Cenvat credit could not be denied solely because the RG-23A Part II entry was made belatedly where the inputs had been received in the factory, supported by duty-paid documents, duly accounted for, and used in the manufacture of finished goods. Rule 4(1) of the Cenvat Credit Rules, 2002 permits credit to be taken on receipt of inputs, so the delayed bookkeeping entry did not defeat entitlement. On those facts, denial of credit was unsustainable and the assessee was entitled to the credit.

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Issues: Whether Cenvat credit could be denied merely because the credit was entered in RG-23A Part II belatedly, when the inputs had been received, duly accounted for and used in manufacture.

Analysis: Rule 4(1) of the Cenvat Credit Rules, 2002 permits Cenvat credit to be taken immediately on receipt of inputs in the factory. The inputs were received and recorded in the statutory register, the duty-paid documents were available, and the authorities found that the inputs were properly accounted for and used in the finished goods. In these circumstances, the delay in making the Part II entry did not justify denial of credit.

Conclusion: The denial of Cenvat credit was unsustainable and the assessee was entitled to the credit.

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