Modvat credit cannot be denied for a wrong consignee address when receipt and use of goods are undisputed.

Modvat credit could not be denied solely because an invoice showed a wrong consignee address when receipt and use of the goods were not disputed. The record showed that the only defect concerned the address, while the underlying transaction was otherwise genuine, so the invoice remained valid for credit purposes. Minor procedural irregularities in invoices or declarations were treated as insufficient to defeat credit, especially where the goods were received in the factory and a Board circular supported ignoring such lapses. On that basis, denial of Modvat credit was not justified and credit was restored.

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Issues: Whether Modvat credit could be denied merely because the invoice bore a wrong consignee address, when receipt and use of the goods were not disputed and the defect was claimed to be a minor procedural lapse.

Analysis: The invoice dispute was confined to the correctness of the address. The show cause notice did not question the receipt of goods in the factory, and the lower authorities' approach of treating the document as invalid was examined against the factual record. The decision also took support from the principle that minor procedural irregularities in invoices or declarations should not defeat credit where the transaction is otherwise genuine, and from the cited Board circular directing that such lapses may be ignored.

Conclusion: The invoice was treated as valid for credit purposes and denial of Modvat credit was not justified.

Final Conclusion: The orders of the lower authorities were set aside and Modvat credit was restored to the assessee on the basis that a minor address defect could not, by itself, invalidate the credit claim.

Ratio Decidendi: A minor procedural defect in an invoice, such as an incorrect address, does not by itself warrant denial of Modvat credit where the receipt and use of goods are not in dispute and the transaction is otherwise genuine.

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