Modvat credit failed where invoices covered goods cleared from an unauthorised godown not shown in the supplier's registration.

Modvat credit could not be supported where the goods were cleared from a godown not reflected in the supplier's registration certificate, because an unregistered storage or clearance place was treated as unauthorised and the invoices were therefore invalid for credit purposes. The later vacation of the godown did not cure the defect, and the trade notice did not establish departmental intimation or verification of the premises. On that basis, refund by way of re-credit was disallowed.

---

---

Issues: Whether the appellants were entitled to refund by way of re-credit of Modvat credit on invoices issued in respect of goods cleared from a godown not reflected in the supplier's registration certificate.

Analysis: The supplier's godown from which the goods were cleared was not included in the registration certificate and was therefore treated as an unauthorised place of storage and clearance. The subsequent vacation of that godown before December 1994 did not affect the validity of the invoices. The trade notice relied upon did not establish that the godown had been duly intimated or verified by the Department. Since the place of clearance was not shown as an authorised premises and no tangible evidence was produced to the contrary, the invoices could not support Modvat credit.

Conclusion: The refund by way of re-credit was rightly disallowed and the appeal was dismissed.

---