Modvat credit on registered dealer invoices upheld where the prescribed invoice alone satisfied the documentation requirement.

Modvat credit was treated as admissible where inputs were received on a prescribed invoice issued by a registered dealer under Rule 57GG. The absence of a sale document, purchase order, or separate proof of purchase and ownership was not regarded as a condition for credit because the notification required only the prescribed invoice. The Board's clarification, read with the High Court order relied on by the assessee, supported the view that the credit mechanism operated on the basis of the dealer's invoice, so the Revenue's objection on missing sale documentation was rejected.

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Issues: Whether Modvat credit could be availed on the strength of an invoice issued by a registered dealer under Rule 57GG, without a sale document or proof of purchase and ownership of the goods.

Analysis: The goods were received from a registered dealer on an invoice which was the prescribed document under the relevant notification. The notification did not require a sale document, purchase order, or proof of ownership as a condition for credit. The Board had also clarified the position in the light of the High Court order relied upon by the assessee, and the Tribunal held that the credit mechanism operated on the basis of the prescribed invoice issued by the registered dealer.

Conclusion: Modvat credit was admissible on the invoice issued by the registered dealer, and the Revenue's objection based on the absence of a sale document was rejected.

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