Capital goods credit cannot be denied merely for invoice name defects when duty-paid goods are received and installed.

Credit on capital goods was held admissible where the goods were duty paid, received in the factory and installed for expansion of the unit. The absence of the assessee's name on the invoices, by itself, was treated as insufficient to deny credit when the documents showed the goods were on account of the assessee and bore the factory address. On those facts, the documentary objection raised in the show-cause notice failed, and denial of credit was not sustainable.

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Issues: Whether credit on capital goods could be denied merely because the invoices were not originally consigned in the assessee's name, though the goods were duty paid, received in the factory, and installed for expansion of the unit.

Analysis: The dispute turned on the documentary requirement for availment of credit on capital goods. The invoices showed the goods were on account of the assessee and mentioned the factory address, and the goods were received duty paid and installed in the assessee's unit. In these circumstances, the mere fact that the documents were not originally consigned in the assessee's name was treated as insufficient to deny credit. The basis of the show-cause notice did not survive on the facts found.

Conclusion: Credit on capital goods was admissible and the denial of credit was not sustainable; the issue was decided in favour of the assessee.

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