Cenvat credit on second stage dealer invoices allowed where goods were received by the claimant and documents otherwise satisfied credit conditions.

Cenvat credit under Rule 7(1) of the Cenvat Credit Rules, 2002 cannot be denied merely because a second stage dealer's invoice names a different customer, where the goods are actually received in the claimant's factory and the invoice identifies the claimant as consignee. The controlling test is whether the statutory documents are otherwise valid and the chain of receipt and correlation of goods is established. On that basis, the credit claim was upheld and the denial of Cenvat credit was unsustainable.

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Issues: Whether Cenvat credit can be denied to a consignee who receives goods under invoices issued by a second stage dealer merely because the buyer shown in the invoices is a different person.

Analysis: Credit under Rule 7(1) of the Cenvat Credit Rules, 2002 is available on invoices issued by a first stage or second stage dealer. Where the goods are actually received in the appellant's factory and the invoices identify the appellant as consignee, the mere fact that another person is shown as customer does not by itself render the document invalid. The decision followed earlier Tribunal authority holding that credit cannot be denied when the chain of receipt and correlation of goods is established and the dealer's invoice is otherwise a valid document.

Conclusion: The appellant was entitled to Cenvat credit and the denial of credit was unsustainable.

Ratio Decidendi: Credit cannot be denied on a second stage dealer's invoice merely because another person is named as customer, if the goods are directly received by the claimant and the statutory documents otherwise satisfy the credit conditions.

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