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July 2012

CENVAT credit — Bills of entry showing address of some other unit but goods received at the factory — Credit cannot be denied even if it was not claimed immediately on receipt of goods and even if the address not mentioned on the bill of entry.

By Puloma Dalal
Jayesh Gogri
Chartered Accountants
Reading Time 1 mins
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43. (2012) 26 STR 395 (Tri.-Mumbai) SGS India Pvt. Ltd.

CENVAT credit — Bills of entry showing address of some other unit but goods received at the factory — Credit cannot be denied even if it was not claimed immediately on receipt of goods and even if the address not mentioned on the bill of entry.


Facts:

The appellant received goods at the factory, however, the bills of entry showed the address of their head office. Moreover, the credit was claimed after a span of one year. The Department relying on the case of Marmagoa Steel Ltd. (2004) 178 ELT 480 (T) denied the credit on two grounds: the address of the factory was not mentioned in the bills of entry and the credit was supposed to be claimed immediately on receipt of goods.

Held:

The case on which the Department was relying had been reversed by the Bombay High Court and such reversal has been affirmed by the Supreme Court 229 ELT 481 (SC). The credit cannot be denied to the appellant merely on the ground that credit was not taken immediately. The Tribunal further observed that not taking credit immediately affected the assessee more than the Revenue.

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