Endorsed invoice and diversion in transit supported credit eligibility where the original consignee refused delivery.

Input tax credit was considered maintainable where goods covered by an invoice were diverted to another consignee after the first consignee refused delivery, and the invoice was endorsed by the Range Superintendent. The analysis treated the endorsed invoice, the verifiable duty-paid character of the goods, and administrative instructions permitting diversion in transit as supporting the validity of the re-routed consignment. On that basis, credit was not to be denied merely because the invoice had been endorsed, and pre-deposit of the disputed duty was waived.

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Issues: Whether credit could be denied and pre-deposit insisted upon where goods originally covered by an invoice were diverted to another consignee after the first consignee refused to receive them, and the invoice was endorsed by the Range Superintendent.

Analysis: The dispute turned on the validity of an endorsed invoice in the special factual situation where the same consignment was redirected to another consignee after rejection by the original consignee. The invoice had been endorsed by the Range Superintendent, and the goods and duty-paid character could be verified in such circumstances. The administrative instructions permitting diversion in transit were also relied upon in support of the arrangement.

Conclusion: Credit was not to be denied on the ground of endorsement, and pre-deposit of the disputed duty was waived.

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