CENVAT credit denied for paper-only scrap transactions; Rule 9 bars endorsed Bills of Entry without actual receipt

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....CESTAT dismissed the appeal, upholding denial of CENVAT credit and consequential demand and penalties. The appellant, a manufacturer of TMT bars without an induction furnace, had claimed credit on melting scrap imported and dealt with only on paper, which was not its input at the relevant time. The Tribunal held that Rule 9 does not permit endorsement of Bills of Entry by a registered dealer and that no evidence existed of physical receipt, movement or use of the scrap in manufacture. The paper transactions, lacking sale, purchase or actual transfer of goods, rendered the appellant ineligible for CENVAT credit.....