Cenvat credit on imported inputs allowed where Bills of Entry proved duty payment and receipt of goods was undisputed.

Cenvat credit on imported inputs could not be denied merely because an internal transfer memo was not among the documents listed in Rule 9 of the Cenvat Credit Rules, 2004. The imported manganese ore was supported by Bills of Entry showing duty payment, and there was no dispute that the goods were received in the factory and used in manufacture. In these circumstances, the Bill of Entry remained the relevant duty-paid document, and the absence of the transfer memo from the prescribed list did not justify rejection of credit. The claimed credit was therefore allowable.

---

---

Issues: Whether Cenvat credit on imported inputs could be denied merely because the internal transfer memo was not one of the documents specified under Rule 9 of the Cenvat Credit Rules, 2004, when credit was supported by the Bills of Entry and the inputs were received and used in the factory.

Analysis: The imported manganese ore was cleared on Bills of Entry showing payment of duty, and the transfer memo was only an internal document recording diversion of quantities to the Durgapur unit. There was no dispute about receipt of the goods in the unit or their use in manufacture. In these circumstances, the relevant duty-paid document remained the Bill of Entry, and the absence of the transfer memo from the list of prescribed documents did not justify denial of credit. The conclusion was supported by the principle applied in similar cases that credit cannot be denied where the duty-paid import document and actual receipt of inputs are established.

Conclusion: Denial of Cenvat credit was unsustainable; the credit claimed on the basis of the Bills of Entry and transfer memo was allowable.

---