Cenvat credit on endorsed invoices was denied after the 01.04.1994 procedural change in the duty credit scheme.

Cenvat credit was held inadmissible on endorsed invoices for inputs received after 01.04.1994, because the changed credit scheme replaced gate passes with invoices and no longer permitted credit on endorsed documents. The Larger Bench view treating endorsed invoices as invalid documents after the change in law was followed, and the later High Court decision approving that view was preferred over the contrary authority relied on by the assessee. Credit was therefore denied for the relevant period.

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Issues: Whether Cenvat credit could be availed on the basis of endorsed invoices for inputs received during the period after 01.04.1994.

Analysis: The procedure for availing credit changed with effect from 01.04.1994, when gate passes were replaced by invoices and the statutory scheme no longer permitted credit on endorsed documents. The Larger Bench view that endorsed invoices were not valid documents after the change in law was followed, and the later High Court decision approving that view was preferred over the contrary view cited by the assessee.

Conclusion: Cenvat credit on endorsed invoices was not admissible for the relevant period, and the appeal failed.

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