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of <h1>Tribunal grants Modvat credit for lubricants, citing unjustifiable denial based on invoice omission.</h1> The Tribunal set aside the denial of Modvat credit for lubricants due to non-defacement of manufacturers' invoices by the dealer, citing unjustifiability ... Cenvat/Modvat - Inputs - Duty paying documents Issues: Denial of Modvat credit for lubricants based on non-defacement of manufacturers' invoices by the dealer.Analysis:1. The appellant sought Modvat credit of Rs. 58,215 for lubricants procured from M/s. Indian Oil Corporation Ltd. based on Rule 52A invoices. The credit was disallowed by lower authorities due to non-defacement of manufacturers' invoices by the dealer.2. The appellant argued that there were no defects in the dealer's invoices, and the duty-paid nature of the goods, as well as their use in manufacturing final products, were undisputed. The denial of Modvat credit was challenged citing the decision in Jindal Metal Industries v. CCE, Ludhiana, 2004 (167) E.L.T. 445.3. Upon review, it was confirmed that the duty-paid lubricants were received and utilized by the appellant without any discrepancies in the dealer's invoices. The sole reason for denial was the non-defacement of manufacturers' invoices by the dealer, without any show-cause notice issued to the dealer by the department.4. The Tribunal held that denying Modvat credit solely on the basis of the dealer's omission, without issuing a show-cause notice, was unjustifiable. Citing the precedent in Jindal Metal Industries, the impugned order was set aside, and the appeal was allowed, granting the Modvat credit for the lubricants.
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