CEGAT Appellate Tribunal allows Modvat credit appeal on Bill of Entry, deems sister concern's endorsement valid.

The Appellate Tribunal CEGAT, New Delhi allowed the appellants' appeal regarding the disallowed Modvat credit on a Bill of Entry. The Tribunal deemed the endorsement by a sister concern valid due to the relatedness of both units and the receipt of the entire consignment by the appellants. As a result, the appeal was allowed, and the impugned order was set aside.

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Issues: Whether Modvat credit could be denied on the ground that the bill of entry stood in the name of a sister concern and was endorsed in favour of the appellant unit though the named concern was not shown as the appellant's head office or registered office.

Analysis: The denial of credit rested only on a technical objection to the endorsement of the bill of entry. The Tribunal noted that the departmental record itself treated the Ram Tirath Road concern as the head office in other proceedings, and there was no dispute that the entire consignment covered by the bill of entry had been received. In these circumstances, the objection was held to be too tenuous to defeat the credit claim, and the cited Board instructions were not treated as a basis to deny relief on the facts found.

Conclusion: The denial of Modvat credit was not justified and the assessee was entitled to the credit.

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