Cenvat credit allowed on consignee-named transit sale invoices despite an unregistered intermediary dealer.

Cenvat credit is admissible in a transit sale where the manufacturer's duty-paying invoice names the recipient as consignee, even if the intermediary dealer is unregistered. The Tribunal applied the Board's clarification and prior decisions recognizing credit in such circumstances, and treated the consignee entry on the invoice as sufficient for entitlement. On that basis, denial of credit, together with the related demand, interest and penalty, was not sustainable.

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Issues: Whether Cenvat credit was admissible where the goods were supplied on the manufacturer's invoice showing the assessee as consignee and the intermediary dealer was unregistered.

Analysis: The dispute turned on the applicability of the Board's clarification on transit sale, under which credit is available to the consignee when a manufacturer or registered importer issues the invoice directly in the consignee's name and the intermediary dealer is not registered. The Tribunal found that the invoices contained the assessee's name as consignee and that the case was covered by the settled departmental circular and earlier Tribunal decisions recognizing credit in such circumstances.

Conclusion: The assessee was entitled to Cenvat credit and the denial of credit, demand, interest, and penalty could not be sustained.

Final Conclusion: The impugned orders were set aside and the appeal succeeded with consequential relief.

Ratio Decidendi: Cenvat credit is admissible where duty-paying invoices issued by the manufacturer or registered importer name the recipient as consignee in a transit sale, even if the intermediary dealer is unregistered.

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