CENVAT credit on courier bill of entry upheld, and extended limitation rejected for want of suppression or evasion intent.

CESTAT Mumbai held that a courier bill of entry can serve as a valid duty-paying document for CENVAT credit on imported inputs where the goods were received and used in manufacture of dutiable final products, so denial on a technical objection was unwarranted. It also held that the demand was time-barred because the credit was disclosed in regular returns and audited records, and there was no proof of wilful misstatement, suppression of facts, or intent to evade duty to justify the extended limitation period. The demand was therefore set aside with consequential relief.

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Issues: (i) whether a courier bill of entry is a proper document for availing CENVAT credit under the CENVAT Credit Rules, 2004; and (ii) whether the demand was barred by limitation.

Issue (i): whether a courier bill of entry is a proper document for availing CENVAT credit under the CENVAT Credit Rules, 2004

Analysis: The credit was claimed on imported inputs supported by courier bill of entry. The relevant credit rules were read with the import clearance framework, and the document was treated as a valid bill of entry for clearance of imported goods. As the inputs had been received and used in the manufacture of dutiable final products, denial of credit on a technical objection was not justified.

Conclusion: The courier bill of entry was held to be a proper document and CENVAT credit was admissible.

Issue (ii): whether the demand was barred by limitation

Analysis: The availment of credit was disclosed in regular returns and the records were subjected to audit from time to time. No material was shown to establish wilful misstatement, suppression of facts, or contravention with intent to evade duty. In the absence of such ingredients, the extended period could not be invoked and the demand beyond the normal period could not survive.

Conclusion: The demand was held to be time-barred.

Final Conclusion: The assessee succeeded on both admissibility of credit and limitation, and the demand was set aside with consequential relief.

Ratio Decidendi: Where receipt and use of imported inputs are undisputed, courier bill of entry can serve as a valid duty-paying document for CENVAT credit, and the extended limitation period cannot be invoked absent proof of wilful suppression or intent to evade duty.

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