Cenvat Credit

[SHIVKUMAR SHARMA]

Dear Sir,

We have import Material by air & Prepared common bill of entry(Courier bill of Entry for Dutiable goods) for 8 importers.please give your Expert opinion whether we can take cenvat credit on xerox copy of bill of entry.Please give reference of Board circular/Notification/Case law if possible.

Thanks

[KASTURI SETHI]

Dear Sir,

Will you please go through Notification No.27/2015-CE(NT) dated 31.12.2015 ? Pl. read with Rule 9 (1) (d) of Cenvat Credit Rules ?

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Kasthuri Sethi.

[SHIVKUMAR SHARMA]

Dear Sir

Please give your opinion Whether we can take cenvat credit on Xerox copy of Courier bill of Entry as the notification Number mentioned in your reply is silent on this issue.

Regards.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you are having original invoice or not? If original invoice is at one place and activities of taking and utilizing credit is at another place you may take the credit on xerox copies. But whenever demanded by the department original is to be produced.

In case non availability of original invoice you may approach the jurisdictional Superintendent and inform the situation and got the zerox copy of the invoice certified by him and then take credit of the same.

[KASTURI SETHI]

Yes. I agree with Sh.Mariapan Govindarajan, Sir. This change is effective from 31.12.15. In Courier Bill of Entry more than one persons are taking benefit of credit.Only one person can keep in original and the remaining persons can take credit on xerox copy after getting the same certified from Customs authority.

[MUKUND THAKKAR]

Dear Shivkumar,

As per Board circular no 31/2007(custom) dated 29.08.2007. it is clarified that for availment of cenvat credit on imported goods, the normal bill of entry is required to be filed by the courier and this bill of entry may be used by importer for taking credit.

if you have received common bill of entry you are not eligible to take cenvat cerdit.

[SHIVKUMAR SHARMA]

Dear Sir,

As per Para 2 of Circular No.31/2007(Custom) The Customs authority is not suppose to issue separate certificate for this purpose.Please advise.

Thanks with Regards.

Shivkumar sharma

[KASTURI SETHI]

Sh. Sharma Ji,

You rely on a circular rather notification ? Notification is latest. Moreover, during my posting in audit I have seen so many cases where a certificate was issued by the Customs authorities to enable a manufacturer to avail Cenvat Credit. We have never disallowed cenvat credit on a certificate issued by the Customs Authorities subject to the actual receipt of goods/inputs and and utilization in the manufacture of final products. Books of accounts should prove these factors. There are two fundamental requirements for availment of credit--these are inputs must be duty paid and these must be utilised in or in relation to the manufacture of dutiable final products. Rest of conditions are procedural. A certificate issued by an appraiser is a valid document. Has Board's circular a statutory force ???

AI Summary

Cenvat credit on bill of entry copies allowed if Customs-certified copies prove duty-paid inputs and actual utilisation. The operative position is that Cenvat credit requires inputs to be duty-paid and actually received and utilised in manufacture; procedural documentary requirements may be met by xerox copies certified by Customs when the original bill of entry is held by another beneficiary or is unavailable, but the original must be produced on demand and books must evidence receipt and utilisation.