Modvat credit requires a bill of entry in the claimant's name; a later endorsement cannot cure the original defect.

Modvat credit was denied where the bill of entry, at the time of clearance, stood in the name of another consignee and was not made out in favour of the claimant. A later endorsement transferring the consignment, made only at the stage of de novo adjudication, could not cure the original defect in the duty-paying document. The operative effect was that credit was held inadmissible because the claimant did not hold a valid document in its own name when credit was taken.

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Issues: Whether Modvat credit was admissible where the bill of entry originally stood in the name of another consignee and the endorsement transferring the consignment to the respondents was made only later.

Analysis: Credit was claimed on the basis of a bill of entry which, at the time of clearance, did not show the respondents as the consignee. The subsequent endorsement was made long after the date of the bill of entry and only at the stage of de novo adjudication. Such an endorsement could not cure the original defect, because the document on which credit was taken was not made out in favour of the respondents.

Conclusion: Modvat credit was not admissible to the respondents, and the subsequent endorsement could not be accepted.

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