Endorsed Bill of Entry supported Modvat credit for goods transferred directly from the dock to factory.

Modvat credit was admissible on an endorsed triplicate Bill of Entry where imported goods were transferred directly from the dock to the assessee's factory and the Customs officer had signed and stamped the document. Board Circular No. 96/7/95-CX permitted credit on such endorsed documents when the whole consignment was sold from the dock, and the later amendment to Rule 57G of the Central Excise Rules, 1944 did not e that facility. A subsequent public notice also confirmed that Customs endorsement on the Bill of Entry could support credit.

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Issues: Whether Modvat credit was admissible on the strength of an endorsed triplicate Bill of Entry when the imported goods were transferred directly from the dock to the assessee's factory.

Analysis: The endorsed triplicate Bill of Entry was signed and stamped by the proper officer of Customs and showed transfer of the entire consignment to the assessee. Board Circular No. 96/7/95-CX. permitted use of such a document for availing Modvat credit where the whole consignment was sold out from the dock, and the later amendment to Rule 57G of the Central Excise Rules, 1944 did not render that facility inoperative. The subsequent public notice also confirmed that credit could be granted on the basis of Customs endorsement on the Bill of Entry.

Conclusion: Modvat credit was admissible to the assessee on the endorsed Bill of Entry.

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