Modvat credit on endorsed Bills of Entry may survive where surrounding evidence supports transfer and identity of imported inputs.

Modvat credit was said not to be deniable solely because imported inputs were supported by endorsed Bills of Entry rather than the prescribed certificate. Endorsements on the Bills of Entry, together with the jurisdictional Superintendent's certificate, prima facie indicated that the goods had not been received by the original importers and that no Modvat credit had been taken by them. Because the transfer of the goods, the claim of return of loaned materials, and the supporting correspondence needed fuller factual verification, the matter was remanded for fresh consideration of eligibility after the appellant produced further evidence.

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Issues: Whether Modvat credit could be denied merely because the imported inputs were supported by endorsed Bills of Entry instead of the prescribed certificate, and whether the matter required remand for verification of the surrounding evidence.

Analysis: The documents produced, including the endorsements on the Bills of Entry and the jurisdictional Superintendent's certificate, prima facie indicated that the imported goods had not been received by the original importers and that no Modvat credit had been taken by them. The transfer of the goods to the appellant, the plea of return of loaned materials, and the supporting correspondence were matters requiring fuller factual examination. The absence of one prescribed document could not, at that stage, outweigh the other evidence if the appellant produced material establishing the movement and identity of the goods before the adjudicating authority.

Conclusion: The matter was remanded to the Assistant Commissioner for fresh decision on eligibility to Modvat credit after considering the evidence to be produced by the appellant.

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