Modvat credit on composite documents was allowed where essential invoice particulars were present despite a proforma invoice tick mark.

Modvat credit was admissible where composite documents labelled invoice/proforma invoice/stock transfer advice/branch transfer advice contained the essential particulars required under the scheme, including serial number, duty details, date and time of removal, vehicle number and the mark "duplicate for transporter". The tick mark against "proforma invoice" did not change the document's substantive character when it functioned as an invoice and duty-paying document for rule purposes, so the disallowance was unsustainable.

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Issues: Whether Modvat credit was admissible on composite documents described on top as invoice/proforma invoice/stock transfer advice/branch transfer advice, where the word "proforma invoice" was ticked, but the documents otherwise contained the particulars required for availing credit.

Analysis: The document in dispute was not a mere proforma invoice in commercial parlance. It carried serial numbers, duty particulars, date and time of removal, vehicle number, and the mark "duplicate for transporter". The essential particulars required under the Modvat scheme were thus present. The mere fact that the word "proforma invoice" was ticked did not alter the true character of the document when, in substance, it functioned as an invoice and duty-paying document for the purposes of the relevant rules.

Conclusion: Modvat credit was admissible on the disputed documents and the disallowance was unsustainable.

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