Modvat credit on endorsed dealer invoices upheld where the circular expressly covered the document.

Endorsed dealer invoices were treated as admissible Modvat documents where the departmental circular covered such invoices under the relevant scheme. The revenue's relied-on decisions were distinguished because they involved different factual settings, including impermissible endorsement practices or invoices outside the applicable notification. The Board's Circular No. 207/41/96-CX dated 1-5-1996 was found to squarely support the assessee's claim, and Modvat credit was held allowable on the endorsed invoice.

---

---

Issues: Whether Modvat credit could be taken on the basis of an invoice issued by a dealer and subsequently endorsed by the Superintendent of Central Excise, and whether the departmental circular covered such invoices under the relevant Modvat scheme.

Analysis: The only substantive question was whether an endorsed dealer invoice was an admissible Modvat document in the facts of the case. The cited decisions relied upon by the revenue were distinguished as relating to different factual situations, including cases where the endorsement practice itself was found impermissible or where the invoices were not covered by the relevant notification. The Board's Circular No. 207/41/96-CX dated 1-5-1996 was found to squarely cover the issue and support the assessee's claim.

Conclusion: The assessee was entitled to Modvat credit on the endorsed invoice, and the appeal was allowed.

---