Modvat credit on endorsed bill of entry accepted where duty-paid documentation under Rule 57G was satisfied.

Modvat credit was available where duty-paid inputs were covered by an endorsed bill of entry treated as a duty-paying document. The requirement under Rule 57G was satisfied because the inputs were accompanied by the prescribed duty-paying document, and the Tribunal followed its earlier orders on the same point. On that basis, credit could not be denied merely because the bill of entry was endorsed, and the assessee was held entitled to the credit.

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Issues: Whether Modvat credit was admissible on the basis of an endorsed bill of entry under Rule 57G.

Analysis: The inputs were duty paid and the bill of entry was treated as a duty-paying document for the purpose of Modvat credit. The requirement under Rule 57G(2) was that the inputs be accompanied by duty-paying documents, and that condition was satisfied. The issue had also been settled by prior orders of the Tribunal, which were followed.

Conclusion: The credit on the endorsed bill of entry was admissible and the appeal was allowed in favour of the assessee.

Ratio Decidendi: Where inputs are accompanied by an endorsed bill of entry that operates as a duty-paying document, Modvat credit cannot be denied if the statutory requirement of duty-paid documentation is otherwise satisfied.

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