Tribunal grants Modvat credit but upholds denial for lack of dealer registration. Penalty set aside.

The Tribunal allowed the appeal against the denial of Modvat credit of Rs. 31,927, as previous decisions supported such credit in similar situations where the Bill of Entry was in the name of the Head Office. However, the denial of credit amounting to Rs. 772 based on an invoice from an unregistered dealer was upheld, as there was no evidence of registration before the specified deadline. The penalty of Rs. 5000 was set aside, and the appeal was disposed of accordingly.

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Issues Involved: Appeal against denial of Modvat credit and credit availed on unregistered dealer's invoice.

Modvat Credit Denial: The appellant appealed against the denial of Modvat credit amounting to Rs. 31,927, as the Bill of Entry was in the name of the Head Office, but the credit was availed in the factory. Citing precedents, the appellant argued that previous decisions allowed such credit in similar situations. The Tribunal found that the issue of availing credit based on the Bill of Entry being in the name of the Head Office was settled by previous decisions, thus setting aside the denial of credit.

Credit on Unregistered Dealer's Invoice: Another amount of Rs. 772 was denied as credit was availed based on an invoice from an unregistered dealer. The respondent contended that the decision of the Hon'ble Gujarat High Court regarding registration before a specified date was not applicable in this case, as there was no evidence of registration before the deadline. The Tribunal upheld the denial of this credit, stating that the precedent cited was not relevant to the present case. However, the penalty of Rs. 5000 was set aside considering the circumstances. The appeal was disposed of accordingly.

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