CENVAT ON IMPORTED GOODS IS ADMISSIBLE ONLY ON THE BASIS OF BILL OF ENTRY

Essar Gujarat Limited (Essar) imported certain goods in three consignments and transferred the goods directly from the port to the factory of the loan licensee (being the taxpayer). The taxpayer availed Cenvat credit of the countervailing duty (CVD) paid by Essar. The Revenue sought to deny the credit on the ground that goods were received in the factory under the cover of delivery challans, which were not the appropriate documents for availing of credit. The Supreme Court held that the taxpayer produced the triplicate copy of the bill of entry in respect of two consignments; and hence, was entitled to Cenvat credit. However, in respect of the third consignment, the taxpayer did not produce the triplicate copy of the bill of entry; hence, the credit was not admissible.