Cenvat credit on imported inputs accepted where duty-paid receipt was shown through a certificate and Bill of Entry copy

A photocopy of the Bill of Entry, read with the importer's certificate evidencing duty payment and movement of the imported paper sacks to the manufacturing units, was treated as sufficient documentation for Cenvat credit. Rule 7(b) of the Cenvat Credit Rules recognises a supplementary invoice or similar document evidencing payment of duty as an eligible credit document, and the original import document was not required where the duty-paid nature of the inputs and their receipt for manufacture were established. Credit could not be denied on the ground that the original Bill of Entry was not produced.

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Issues: Whether a photocopy of the Bill of Entry together with a certificate issued by the importer evidencing payment of duty was sufficient for availing Cenvat credit.

Analysis: The imported paper sacks were distributed by the importer among its own manufacturing units, so the original Bill of Entry could not accompany each transfer. The document issued by the importer certified payment of duty and the movement of the goods to the respective units. Under Rule 7(b) of the Cenvat Credit Rules, a supplementary invoice or similar document evidencing payment of duty is an eligible document for credit. The certificate, read with the photocopy of the Bill of Entry, was treated as adequate proof of duty-paid receipt and use of the inputs in manufacture.

Conclusion: The documentary requirement for Cenvat credit was satisfied and the credit could not be denied on that ground.

Ratio Decidendi: Where the duty-paid character of inputs and their receipt in the factory are established, a supplementary or similar document evidencing payment of duty may suffice for Cenvat credit even if the original import document is not produced.

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