Modvat credit split between two factories was upheld where the bill of entry named the registered office and duty paid was not exceeded.

Modvat credit of additional duty of customs was held not to be deniable merely because it was availed partly in one factory and partly in another, where the bill of entry stood in the name of the importer's registered office and the combined credit did not exceed the duty actually paid. Applying its earlier decision on identical facts, the Tribunal treated the split utilisation as permissible and rejected denial on that ground.

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Issues: Whether Modvat credit of additional duty of customs could be taken partly in one factory and partly in another, where the bill of entry stood in the name of the importer's registered office and the total credit taken by both factories did not exceed the duty paid.

Analysis: The Tribunal applied its earlier decision on identical facts and noted that the bill of entry bore the address of the importer's registered office. It further noted that the combined credit taken by both factories did not exceed the additional duty actually paid. On that basis, denial of credit merely because it was split between two factories was not warranted.

Conclusion: The issue was answered in favour of the assessee, and the credit could not be denied on the ground that it was taken partly in two factories.

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