Cenvat credit admissibility upheld where documentary records proved receipt of inputs despite dealer registration disputes and retrospective cancellation.

Cenvat credit cannot be denied merely because a registered dealer's premises were allegedly irregularly taken on rent or the dealer's registration was later cancelled retrospectively, where documentary records otherwise support receipt and transport of inputs. The Tribunal noted that the manufacturer from whom goods were dispatched was undisputed, the appellant recorded the inputs in RG-23A Part-I, paid service tax on GTA services, and used the inputs in manufacture of final products cleared on duty. As the Revenue relied mainly on a premises owner's statement and failed to rebut the documentary trail or show any alternative source of procurement, the credit was held admissible and the denial was unsustainable.

---

---

Issues: Whether Cenvat credit could be denied merely because the registered dealer's premises were found to be irregularly taken on rent and the dealership was cancelled retrospectively, when the receipt and transportation of inputs were otherwise supported by records.

Analysis: The original adjudicating authority had accepted the documentary evidence showing transportation of the inputs and payment of service tax on GTA services. The manufacturer from whom the goods were dispatched was undisputed, and the dealer was a registered dealer under the Central Excise regime. The Revenue's case rested essentially on the statement of the premises owner, whereas the second statement of the dealer indicated a rent dispute. The appellant had procured the goods from a registered dealer, recorded the receipts in RG-23A Part-I, and used the inputs in manufacture of final products cleared on payment of duty. The Revenue failed to establish any alternative source of procurement or rebut the documentary trail supporting actual receipt of inputs.

Conclusion: Cenvat credit was admissible and the denial was unsustainable; the order allowing the credit was restored in favour of the assessee.

---