Cenvat credit on imported goods upheld where duty was paid through DEPB scrips and bill of entry documents supported the claim.

Cenvat credit on imported raw materials was considered admissible where CVD and cess had been paid through DEPB scrips and the credit claim was supported by the bill of entry and certified copies. The applicable Cenvat Credit Rules allowed credit on prescribed documents, including a bill of entry, and no legal bar was shown against availing credit merely because duty was discharged through DEPB scrips. As the foundational import documents were produced before the departmental authority, the credit was held to be properly established and denial under Rule 14 was unsustainable.

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Issues: Whether Cenvat credit of CVD and cess was admissible on imported raw materials where the duty and cess had been paid by utilising DEPB scrips and the credit was supported by the bill of entry and certified copies thereof.

Analysis: The applicable Cenvat Credit Rules permitted credit on the strength of prescribed documents, including a bill of entry. The disputed credit was taken on imported goods for which CVD and cess had been paid through DEPB scrips, and there was no legal disability shown against availing credit on that basis. The records also showed that certified copies of the bills of entry were produced before the departmental authority, and the foundational document for credit was therefore established. In the absence of any bar in the credit scheme and in view of the documentary support, the credit could not be denied under Rule 14.

Conclusion: The Cenvat credit was rightly availed and the denial of credit was unsustainable.

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