Modvat credit remains available after a mere name change when the factory and business continue unchanged.

A mere change in a company's name does not, by itself, disentitle Modvat credit where there is no transfer of business, shifting of the factory, or change in constitution. The restrictions on transfer of unutilized credit for shifting, sale, merger, amalgamation, or other transfer of the factory were treated as inapplicable on those facts. Credit could also not be denied solely because invoices continued to bear the former name, so long as the goods were duty paid and related to the same factory. Modvat credit was therefore held admissible and the denial unjustified.

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Issues: Whether Modvat credit could be denied when the unit's name was changed but there was no transfer of business, shifting of factory, or change in constitution, and whether credit could be denied merely because invoices were issued in the erstwhile name.

Analysis: The change from one company name to another was supported by the registration and incorporation materials, and there was no contrary finding that the factory was shifted or that the machinery or constitution changed. On those facts, the restrictions governing transfer of unutilized credit on shifting, sale, merger, amalgamation, or transfer of the factory were held inapplicable. The invoices continued to relate to the same factory and the goods were duty paid; therefore, omission of the new name in the invoices, by itself, was held not sufficient to deny credit.

Conclusion: Modvat credit was admissible and the denial of credit was not justified.

Ratio Decidendi: Where a mere change of name is established without transfer or shifting of the factory or change in its constitution, Modvat credit cannot be denied solely because invoices bear the old name if the goods are duty paid and meant for the same factory.

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