Modvat credit on consignee invoices upheld in job-work supplies despite goods being routed for another manufacturer.

Modvat credit was admissible where the supplier's invoice named the assessee as consignee and the transport document also reflected that position. The fact that the goods were ultimately intended for another manufacturer and sent to a job worker did not invalidate the invoice for credit purposes. The Board circular supported credit on documents issued in the consignee's name in a job-work supply arrangement. Credit therefore could not be denied merely because the supply was made under instructions of another manufacturer, and the invoice remained a valid basis for taking credit.

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Issues: Whether Modvat credit could be availed on the strength of invoices showing the assessee as consignee though the goods were sold to another manufacturer and sent to a job worker.

Analysis: The invoices issued by the supplier showed the assessee as consignee. The Board circular relied upon contemplated availment of Modvat credit on documents issued in the name of the consignee where inputs were supplied to a job worker under instructions of another manufacturer. On the facts, the invoice was not invalid merely because the goods were ultimately intended for the manufacturer who used the sacks, since the assessee was shown as consignee in the transport document and in the invoice relied upon for credit.

Conclusion: Modvat credit was admissible and was correctly taken on the invoices in question.

Final Conclusion: The credit could not be denied on the ground that the invoice named the assessee as consignee in a job-work supply arrangement, and the appeal succeeded.

Ratio Decidendi: Where the document relied upon for Modvat credit is a valid invoice showing the assessee as consignee, credit cannot be denied merely because the goods were supplied pursuant to instructions of another manufacturer for use by a job worker.

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