Cenvat credit requires actual receipt of goods; false transport particulars and missing inward records defeat entitlement.

Cenvat credit is admissible only when inputs are actually received in the factory and the credit documents contain reliable particulars. Where the Revenue showed, on circumstantial evidence, that the transport details in dealer invoices were false, the assessee had to prove receipt of goods by producing supporting records such as GRNs, gate entries, or inward registers. Applying preponderance of probabilities, the evidence that the transporter was dummy and several vehicle numbers were non-existent or incapable of carrying the goods displaced the genuineness of the invoices. Cenvat credit was therefore inadmissible and the demand was upheld.

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Issues: Whether Cenvat credit availed on the basis of dealer invoices was admissible when the Revenue established, on circumstantial evidence, that the goods were not received and the transport particulars in the invoices were false.

Analysis: Cenvat credit under the relevant rules is available only when the inputs are received in the factory and the credit documents contain valid particulars. The burden of proving admissibility rests on the assessee. The invoices issued under the excise scheme also operate as transport documents, and where the vehicle particulars are found to be untrue and no supporting evidence such as GRNs, gate entries, or inward records is produced, the genuineness of the transactions stands displaced. Applying the standard of preponderance of probabilities, the evidence that the alleged transporter was a dummy and that many vehicle numbers were non-existent or incapable of carrying the goods was sufficient to show that the goods were not received against the invoices.

Conclusion: The Cenvat credit was not admissible and the demand was sustainable.

Ratio Decidendi: Cenvat credit cannot be allowed on invoices alone when the assessee fails to prove receipt of goods and the documentary particulars supporting the credit are shown to be false or unreliable; the burden of establishing entitlement to credit lies on the recipient.

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