Endorsed invoice credit remains admissible where duty-paid inputs are bona fide diverted under jurisdictional authority instructions.

Credit was admissible where duty-paid inputs were diverted to the assessee on an endorsed invoice after the original consignee refused delivery, and the jurisdictional Range Superintendent's endorsement followed Board circular instructions. The endorsed document was treated as valid under Rule 57G of the Central Excise Rules, 1944, and the facts showed a bona fide authorised diversion rather than a sham transaction. Because there was no basis to infer bogus credit, non-receipt of inputs, or credit in excess of duty paid, the Revenue's objection failed and the assessee's entitlement to credit was restored.

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Issues: Whether credit taken on the basis of an endorsed invoice, where the original consignee refused to receive the consignment and the invoice was redirected with the endorsement of the jurisdictional Range Superintendent in accordance with Board circulars, was admissible.

Analysis: The credit was taken on a document treated as valid under Rule 57G of the Central Excise Rules, 1944. The consignment was diverted only after the original consignee declined to receive it, and the endorsement by the jurisdictional Range Superintendent was in line with the Board's circular instructions. The arrangement did not create any risk of bogus credit, nor was there any basis to infer that duty-paid inputs had not reached the assessee or that credit had been taken in excess of duty paid. The situation was distinguishable from the precedent relied upon by the Revenue because the facts here involved an authorised diversion and not a sham or unsupported document.

Conclusion: The credit was admissible and could not be denied to the assessee; the Revenue's appeal failed.

Final Conclusion: The impugned appellate order was set aside and the assessee's entitlement to the credit was restored.

Ratio Decidendi: Credit cannot be denied where the invoice is endorsed by the jurisdictional authority pursuant to Board instructions and the inputs are diverted to the assessee through a bona fide, authorised process.

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