Transitional credit under Board circular upheld for pre-cut-off invoices issued by unregistered dealers.

Credit on invoices issued by unregistered dealers was treated as admissible where the documents were dated before 31-12-1994 and fell within the transitional protection in Board Circular No. 76/94-CX dated 8-11-1994. The circular allowed credit for documents issued before that cut-off date, and invoices within that protected period could not be denied credit on that basis. On the stated facts, the disallowance was unsustainable because the assessee's invoices were covered by the circular's transitional measure.

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Issues: Whether credit was admissible on invoices issued by unregistered dealers where the invoices were dated before 31-12-1994 and the Board's circular provided a transitional measure.

Analysis: The invoices in question were all issued before 31-12-1994. The Board's Circular No. 76/94-CX., dated 8-11-1994, permitted credit on such documents as a transitional measure for documents issued prior to that date. On the facts, the assessee's documents fell within the circular's protective period, and the credit disallowance could not be sustained.

Conclusion: Credit was admissible and the assessee succeeded.

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