CENVAT credit for job workers can be claimed on imported inputs even when Bills of Entry name the principal manufacturer.

A job worker may claim CENVAT credit on imported inputs received and used in manufacture even when the Bills of Entry stand in the principal manufacturer's name, if the duty-paid nature of the documents is undisputed and the principal has authorised the credit by declaration. The relevant rule requires prescribed documents for credit, but not that the claimant's name must appear on the document in every case. On these facts, the documentary requirement was treated as satisfied, and credit could not be denied solely because the Bills of Entry named the principal manufacturer.

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Issues: Whether a job worker is entitled to CENVAT credit on imported inputs covered by Bills of Entry standing in the name of the principal manufacturer, where the goods were received and used by the job worker and the principal manufacturer had issued a declaration authorising such credit.

Analysis: The only objection was that the Bills of Entry did not bear the job worker's name. The relevant rule prescribed the documents on which credit could be taken, but did not require that the person availing credit must necessarily be named in the document. The record showed that the inputs were received, duty-paid character of the documents was not disputed, the inputs were used in manufacture, and the principal manufacturer had issued a declaration that the goods would be sent directly to the job worker and that credit would be taken by the job worker. On these facts, the documentary requirement was held to be satisfied and the earlier decisions recognising credit in similar circumstances were followed.

Conclusion: The job worker was entitled to CENVAT credit; denial of credit solely because the Bills of Entry named the principal manufacturer was not justified.

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