Cenvat credit on imported inputs cannot be denied solely because an internal transfer memo is not listed in Rule 9.

Cenvat credit could not be denied merely because imported inputs were moved to the manufacturing unit through an internal transfer memo rather than a document expressly listed in Rule 9 of the Cenvat Credit Rules, 2004. The bill of entry evidenced duty payment, and the receipt and use of the goods in manufacture were undisputed. Where the underlying import document establishes duty-paid receipt of inputs, an internal transfer memo does not defeat credit. The assessee was therefore entitled to avail Cenvat credit on the bills of entry read with the transfer memo.

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Issues: Whether Cenvat credit could be denied merely because the imported goods were transferred to the manufacturing unit through an internal transfer memo instead of a document specifically listed in Rule 9 of the Cenvat Credit Rules, 2004.

Analysis: The imported manganese ore was cleared on the basis of bills of entry showing payment of duty. The transfer memo was only an internal document evidencing the quantity diverted to the Durgapur unit, and the receipt and use of the goods in manufacture were not in dispute. Rule 9 was applied in the context of the relevant duty-paying document, namely the bill of entry, and the absence of a transfer memo from the prescribed list did not defeat credit where the underlying import document and actual receipt of inputs were established. Reliance was placed on the settled position that imported goods directly transferred to the manufacturing unit may support credit on the strength of the bill of entry.

Conclusion: Cenvat credit could not be denied on this ground, and the assessee was entitled to avail the credit on the basis of the bills of entry read with the transfer memo.

Ratio Decidendi: Where imported inputs are supported by a bill of entry evidencing duty payment and their receipt and use in manufacture are undisputed, Cenvat credit cannot be denied merely because an internal transfer memo is not among the documents expressly listed in Rule 9 of the Cenvat Credit Rules, 2004.

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