Cenvat Credit against goods imported by courier

[Guest]

We have recently faced Central Excise Audit and they have raised question for material Imported through courier and Cenvat credit taken on the same.

My question is, why we can not take Cenvat credit as we have all documents and copy of BL also, but its not of only us, 4+5 Importers name is there in BL ( We have imported through UPS Courier)

Please reply me what to do?? can we take this Cenvat or we have to pay amount??

Thanks

[Snehal Kulkarni]

Normally, in case of Courier Imports, the Courier Agency filed the common b/e and made the payment of appropriate Custom Duty in a Single Challan. Then the consignments distribute to the respective customers.

According to Circular 31/2007-Cus, it is clarified that if the importer wish to claim the cenvat, then he is advised to file the normal b/e as per the Bill of Entry (Forms) Regulations, 1976

Please refer to the case law " The Commissioner of Central Excise versus Ms.Western Ministil Limited " in which it is stated that the Cenvat Credit on the Endorsed Bill Of Entry is admissible.

In case of Imports through DHL Courier, DHL offers the Separate BoE with Customs Attestation in favour of Consignee. You may ensist for such separate boe.

Thanks

 

[YAGAY andSUN]

CENVAT credit on Courier Bill of Entry is allowed.  Audit Department personnel can't act as judge to deny or disallow the CENVAT credit on Courier Bill of Entry.  Attestation on the Courier Bill of Entry would be sufficient.

[NEERAJ KUMAR, RANCHI]

Attestation by custms authorities on bill of entry is not done now after introduction of new cenvat credit rules in 2004 and subsequently issuance of a trade notice from mumbai customs. yes cenvat credit on goods imported through courir can not be disallowed. But te act of audit team also can not be said to be improper, siince youu must have not be in position to correlate the goods on which you have taken cenvat credit with the said bill of entry. However if thhe goods in fact has been brought and used in youur factory premises, cenvat credit should be allowed. But I believe a show cause notice in thhis regard is bound to be issued and you can get some relief from highher appellate authorities only.

[shamanthaka mani]

Please referReserve Bank Circular No. 27 dt.31.8.1999 wherein it is instructed that a xerox copy of B/E furnished by the courier is acceptable as evidence for import and authorised dealers may accept such xerox copy for releasing foreign exchange.  Such being the position it is reasonable to presume that such a xerox copy must be treated as a valid document for availing of credit.  This aspect requires to be clarified suitably through executive instrucitons.

 

 

[YAGAY andSUN]

We do agree with the reply of 'Shamanthaka Mani.'

AI Summary

Cenvat Credit on Courier Imports: Key Documentation Required for Claiming Credit Despite Multi-Importer Bill of Lading A discussion on a forum addresses the issue of claiming Cenvat credit for goods imported via courier, specifically through UPS. The original query questions the inability to claim Cenvat credit despite having all necessary documents, as the Bill of Lading includes multiple importers. Responses suggest that Cenvat credit is generally permissible on courier imports if proper documentation, such as a separate Bill of Entry, is provided. References to relevant circulars and case law indicate that attestation on the Bill of Entry might suffice, though the audit team may require further correlation between goods and documentation. A show cause notice might be issued, with potential relief from higher authorities.