Input tax credit on a missing bill of entry was allowed subject to an indemnity bond securing against misuse.

Input tax credit on a bill of entry may be preserved where the original document is untraceable and only a certified xerox copy is available, provided the assessee safeguards against misuse. Here, credit had been taken on the basis of the triplicate copy, and the customs authorities could not trace the original bill of entry or issue a reconstructed copy. The Tribunal required the assessee to furnish an indemnity bond securing the duty amount and, subject to that condition, permitted the credit already taken.

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Issues: Whether the assessee could be permitted to avail credit already taken when the original bill of entry was not traceable and only a certified xerox copy of the bill of entry was available.

Analysis: The assessee had taken credit on the basis of the triplicate copy of the bill of entry and the customs authorities were unable to trace the original document or supply a reconstructed bill of entry. In these circumstances, the Tribunal directed the assessee to furnish an indemnity bond securing the duty amount against possible misuse of the triplicate copy.

Conclusion: Subject to filing of the indemnity bond, the assessee was permitted to avail the credit already taken.

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