2005 (12) TMI 10 - AT - Central Excise

Endorsed bills of entry denied modvat credit by Tribunal, citing precedents.

The Tribunal dismissed both appeals concerning the denial of modvat credit on endorsed bills of entry. Relying on precedents such as Tata Iron & Steel ... Modvat credit on endorsed bill of entry Issues:Denial of modvat credit on the endorsed bill of entry.Analysis:The appeals were filed against the order-in-appeal upholding the denial of modvat credit on the endorsed bill of entry. The appellants had availed modvat credit during specific months but faced issues as the bill of entry lacked crucial information like the name of the assessee. The Customs authorities' signatures were also unclear, leading to the issuance of a show cause notice. The adjudicating authority confirmed the denial of credit and imposed penalties, a decision supported by the Commissioner (Appeals) upon appeal by the appellants.The main issue revolved around the credit of modvat on the endorsed Bill of Entry. The Tribunal had previously addressed this issue in the Tata Iron & Steel Co. Ltd. case, where it was established that endorsed bills of entry were not considered duty-paying documents. The Tribunal's ruling clarified that while endorsed bills of entry did not qualify for modvat credit, if endorsed by the appellants' own Head Office, credit could be claimed. The timing of endorsement after six months was deemed irrelevant, especially if there was no transfer of inputs between different entities. This position was reaffirmed in the Marmagoa Steel Ltd. case, solidifying the precedent that credit on endorsed bills of entry is not permissible.In consideration of the settled legal position established through previous Tribunal decisions, which clearly stated that modvat credit on endorsed bills of entry is not allowable, both appeals were dismissed by the Tribunal. The operative part of this order was pronounced in open court on a specified date.