Cenvat credit on endorsed depot invoices was disallowed because the documents were not issued in the claimant's name.

Cenvat credit under Rule 7 of the Cenvat Credit Rules, 2002 was not admissible on invoices issued to the supplier's depot and merely endorsed to the assessee, because the documents were not invoices issued in the assessee's name and were not the prescribed credit documents contemplated by the rule. The protective dispensation in sub-rule (1A) did not cure the absence of the recipient's name or relax the requirement that credit be supported by documents issued and traceable in the manner required for availment. The disallowance of credit was therefore upheld.

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Issues: Whether Cenvat credit was admissible on the strength of invoices issued to the supplier's depot and endorsed in favour of the assessee, when the invoices were not issued in the assessee's name.

Analysis: Rule 7 of the Cenvat Credit Rules, 2002 permits credit on the basis of specified documents issued by the manufacturer from the factory, depot, consignment agent or other selling premises. The credit documents in question were issued to the supplier's depot and merely endorsed to the assessee; they were not invoices issued by the manufacturer in the assessee's name. The protective dispensation in sub-rule (1A) does not dispense with the requirement that credit be supported by documents prescribed under Rule 7, and it does not cure the absence of the recipient's name where the document is otherwise not one contemplated by the rule for availment of credit in the manner claimed.

Conclusion: Cenvat credit was not admissible on the endorsed depot invoices, and the disallowance of credit was correct.

Ratio Decidendi: Credit under the Cenvat scheme must be supported by documents issued and traceable in the manner prescribed by the governing rule, and an endorsed invoice not issued in the claimant's name does not satisfy that requirement.

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