Modvat credit cannot be denied for multiple invoices on one despatch when duty payment is undisputed and consolidated debit is permitted.

Modvat credit could not be denied merely because the supplier issued more than one invoice for goods moved in a single truck, where duty payment under the invoices was not disputed and the department had permitted a consolidated PLA debit entry. The objection went only to the form of invoicing, not to the substantive payment of duty or the genuineness of the clearance. In those circumstances, the supplier's use of multiple invoices for the same despatch as a matter of convenience did not justify disallowance of credit. The assessee was therefore entitled to Modvat credit, and consequential relief followed.

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Issues: Whether Modvat credit could be denied merely because the supplier issued more than one invoice for goods moved in a single truck and made a consolidated PLA debit entry at the end of the day.

Analysis: The credit was supported by invoices and by certificates from the supplier and the jurisdictional central excise authorities showing permission to make a consolidated debit entry under the relevant rules. The duty payment under the invoices was not disputed. The objection was only that a single consignment should have been covered by one invoice, but the existence of departmental permission for consolidated debit and the absence of any challenge to the duty payment showed that the invoices were not such as to justify denial of credit.

Conclusion: Modvat credit could not be denied on this ground, and the objection based solely on the form of invoicing failed.

Final Conclusion: The assessee was entitled to Modvat credit and the appeals succeeded with consequential relief.

Ratio Decidendi: Where duty payment is not in dispute and the supplier's consolidated debit procedure is departmentally permitted, Modvat credit cannot be denied merely because multiple invoices were issued for the same despatch as a matter of convenience.

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