Modvat credit on steel bars fails where defective invoices do not establish the consignee and receipt of inputs.

Modvat credit on steel bars was unavailable where the duty-paying invoices did not show the appellants as consignee and the documents contained material irregularities. The invoices named M/s. Tirupati Enterprises, New Bombay, as consignee, so the records failed to establish that the inputs were consigned to the appellants. On defective documents of this kind, the credit claim could not be sustained and was rightly rejected.

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Issues: Whether Modvat credit on steel bars was admissible when the invoices did not show the appellants as the consignee and the duty paying documents contained major irregularities.

Analysis: The invoices relied upon for credit reflected M/s. Tirupati Enterprises, New Bombay, as the consignee, while the appellants were shown to have received the material. The documents therefore did not establish that the inputs were consigned to the appellants. On such defective duty paying documents, the benefit of Modvat credit could not be extended.

Conclusion: The claim for Modvat credit was not sustainable and was rightly rejected.

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