Cenvat credit on imported inputs cannot be denied merely for missing customs endorsement when substantive receipt and use are proved.

Cenvat credit was held admissible where imported inputs were received by the assessee on the basis of the importer's declaration, used in manufacture, and the finished goods were cleared on payment of duty. The only objection was that the Bills of Entry lacked customs endorsement, but the record, including goods receipt notes, delivery challans, lorry receipts and raw material accounts, supported actual receipt and consumption of the inputs. A cited public notice had also dispensed with the endorsement requirement. The denial of credit was therefore set aside because the substantive conditions for credit were satisfied.

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Issues: Whether Cenvat credit could be denied merely because the Bills of Entry were not endorsed by the customs officer, when the goods were received by the assessee on the strength of the importer's declaration, were used in manufacture, and the importer did not avail the credit.

Analysis: The goods were imported by the job-worker's principal and cleared to the assessee with a declaration that the credit would be availed by the assessee. The receipt of inputs in the factory, their use in manufacture, and clearance of finished goods on payment of duty were not disputed. The only objection was absence of customs endorsement on the Bills of Entry. The relevant records, including goods receipt notes, delivery challans, lorry receipts, and raw material accounts, supported receipt and consumption of the inputs. The requirement of customs endorsement had also been dispensed with by the cited public notice. Prior decisions on similar facts were relied upon to hold that credit cannot be denied when the substantive conditions are satisfied.

Conclusion: Cenvat credit was admissible to the assessee and the denial of credit was set aside.

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