2016 (11) TMI 998 - AT - Central Excise

Appeals Denied: Proper Procedure Required for Cenvat Credits on Courier Imports

The Tribunal dismissed the appeals by M/s.Mascot Global Pvt. Ltd., emphasizing the necessity of adhering to prescribed procedures for claiming Cenvat ... Eligibility for Cenvat credit on imported goods - Requirement of original bill of entry for claiming Cenvat credit in courier imports - Procedural mechanism prescribed by CBEC for courier imports to enable credit - Sanctity of original documents and inadmissibility of photocopies for availing credit - Precedential application of Tribunal decisions on identical factsEligibility for Cenvat credit on imported goods - Requirement of original bill of entry for claiming Cenvat credit in courier imports - Procedural mechanism prescribed by CBEC for courier imports to enable credit - Sanctity of original documents and inadmissibility of photocopies for availing credit - Whether Cenvat credit could be allowed on the basis of photo copies of courier bills of entry where consolidated bills are filed by the courier. - HELD THAT: - The Tribunal found that CBEC has prescribed an established procedure to address difficulties arising from courier imports, including the requirement that a consignee who wishes to claim Cenvat credit should file a normal bill of entry as per the Bill of Entry (Forms) Regulations, 1976, and related circulars. The order-in-original records that proviso to Regulation 5(3) of the Courier Imports and Exports (Clearance) Regulations, 1988, and Circular No.31/07 dated 29/08/2007 (with reference to Circular No.56/95 and Circular No.85/1998-Cus) clarify that when a consignee intends to take Cenvat credit he should file a normal bill of entry which will serve as the document for claiming credit, and that customs should not issue separate certificates for this purpose. Given that Cenvat credit has the character of cash, allowing credit on mere photocopies risks misuse; original documents retain sanctity. Where the prescribed method was available to the appellant but not followed, reliance on photocopies is impermissible. The Tribunal applied its earlier decision in Tata Precision Industries (India) Ltd. as being factually and legally similar and therefore applicable. [Paras 4, 5]Credit on the basis of photocopies of courier bills of entry is not permissible; the appellant's claims were rejected for non-production of original/normal bill of entry and in view of the prescribed CBEC procedure.Final Conclusion: Appeals dismissed as the prescribed CBEC procedure required filing a normal bill of entry to claim Cenvat credit in courier imports and credit could not be allowed on photocopies; Tribunal's earlier decision was applied. Issues:- Denial of credit availed on photo copies of the courier bill of entry.Analysis:1. The appellant, M/s.Mascot Global Pvt. Ltd., was issued a notice seeking to deny credit availed on photo copies of the courier bill of entry. Despite the absence of representation, the appellant submitted a written submission relying on a previous decision in their favor.2. The learned AR representing the respondent relied on the Tribunal's decisions in the cases of Tata Precision Industries (India) Ltd. and Niton Valve Industries Pvt. Ltd. He emphasized the requirement for a separate bill of entry for claiming Cenvat Credits in the case of courier imports, citing circulars and regulations issued by CBEC to address such procedures.3. The Tribunal examined the order-in-original, which detailed the procedures for importers to become eligible for Cenvat Credits in the case of courier imports. Circulars issued by CBEC prescribed guidelines for claiming Modvat (now Cenvat) credit, emphasizing the necessity of filing a normal bill of entry for such claims.4. The Tribunal noted that CBEC had provided mechanisms through circulars to address issues related to import by courier, highlighting the importance of original documents over photo copies to prevent misuse of Cenvat Credits. The decision in the case of Tata Precision Industries (India) Ltd. was deemed applicable to the current situation, leading to the dismissal of the appeals.5. Ultimately, the Tribunal dismissed the appeals, emphasizing the significance of following prescribed procedures for availing Cenvat Credits in cases of courier imports. The judgment was pronounced on 13/04/2016 by Mr. Raju, Member (Technical) of the Appellate Tribunal CESTAT MUMBAI.