TaxTMI Login
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Just a moment...
AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether Modvat credit could be denied merely because the challan-cum-invoices were issued by a supplier/dealer who was not registered with the Central Excise Department during the relevant period, when receipt and duty-paid nature of the inputs were not in dispute.
Analysis: The documents produced by the assessee were treated as valid duty-paying documents because the inputs were admittedly received in the factory and used in manufacture, and the duty-paid character of furnace oil was not disputed. The absence of registration of the supplier up to 27.04.1995 was held to be only a technical defect, insufficient to defeat the substantive benefit of Modvat credit. The decision also relied on the view that invoices issued by unregistered depots or dealers could be accepted for Modvat purposes, and the contrary Larger Bench view was treated as having been displaced by the Gujarat High Court decision.
Conclusion: Modvat credit could not be denied solely on the ground that the supplier was unregistered for part of the relevant period, and the assessee was entitled to the credit.
Ratio Decidendi: Where receipt and use of the inputs and their duty-paid nature are undisputed, Modvat credit cannot be denied merely because the invoice or challan was issued by an unregistered dealer or depot, as such non-registration is only a technical lapse.
TaxTMI 
