CENVAT credit on endorsed Bills of Entry upheld where duty payment, receipt, and manufacture use were established.

CENVAT credit cannot be denied merely because the inputs were supported by endorsed Bills of Entry where the duty-paid nature of the goods, receipt in the factory, use in manufacture, and supporting invoices and challans are established. An endorsed Bill of Entry, accompanied by the importer's invoice and TR6 challan evidencing customs duty payment, was treated as sufficient when the substantive conditions for credit were undisputed. The omission of an express reference to endorsed Bills of Entry in Rule 9 of the CENVAT Credit Rules did not defeat entitlement where the underlying factual requirements were satisfied.

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Issues: Whether CENVAT credit could be denied merely because the goods were supported by endorsed Bills of Entry, when the duty-paid character of the inputs, receipt in the factory, utilisation in manufacture, and supporting invoices and challans were established.

Analysis: The endorsed Bills of Entry were accompanied by the importer's invoice and TR6 challan evidencing payment of customs duty. The duty-paid nature of the inputs, their receipt in the factory, and their use in the manufacture of final products were not disputed. The credit was sought to be denied only on the ground that Rule 9 of the CENVAT Credit Rules did not expressly mention an endorsed Bill of Entry as a prescribed document. In the circumstances, the document could not be treated as invalid when the substantive requirements for credit were satisfied and the supporting materials established the entitlement.

Conclusion: CENVAT credit was not liable to be denied merely because the Bill of Entry was endorsed, and the appeal was liable to be rejected.

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