CENVAT credit on inter-division imports allowed for verification, with remand to confirm the original bill of entry endorsement.

Credit on imported goods transferred between divisions was treated as sustainable because the receiving unit was not a separate legal entity but only a division of the appellant. The appellant's endorsement on the triplicate copy of the bill of entry was regarded as a valid endorsement under the relevant Board circular. As there was a dispute over whether the original endorsement had been produced before the lower appellate authority, verification of that document was considered necessary. The impugned order was set aside to that extent and the matter was remanded for fresh consideration after examining the original endorsement.

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Issues: Whether the denial of credit on imported goods transferred from one division to another was sustainable, and whether the matter should be remanded for verification of the original endorsement on the bill of entry.

Analysis: The division receiving the goods was not a separate legal entity but only a division of the appellant. The endorsement made by the appellant on the triplicate copy of the bill of entry was treated as a valid endorsement under paragraph 3 of the relevant Board circular. As there was a dispute on whether the original endorsement had been produced before the lower appellate authority, verification by that authority was considered necessary.

Conclusion: The impugned order was set aside to the extent challenged and the matter was remanded to the lower appellate authority to consider the original endorsement and pass a fresh order.

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