Modvat credit not denied for dealer endorsement where invoices stood in assessee's name and goods were received at its premises.

Modvat credit remains admissible where invoices are issued in the assessee's name and the goods are received at its premises; the mere presence of a dealer's name or an endorsement such as "on account of" the dealer does not invalidate the document. The reference to the dealer is only an accounting feature and does not change the character of the invoice for credit purposes. A departmental trade notice aligned with the Board circular also recognised such invoices for Modvat. The denial of credit was therefore unsustainable, and credit was allowed in favour of the assessee.

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Issues: Whether Modvat credit could be denied merely because the invoices showed the name of a dealer or the endorsement "on account of" the dealer, when the invoices stood in the assessee's name and the goods were received at the assessee's premises.

Analysis: The invoices in question were in the assessee's name and the goods were received at its Paonta Sahib works. The reference to the dealer on the invoices was only for accounting purposes and did not alter the character of the documents for availing credit. The departmental trade notice, issued in line with the Board circular, also recognised such documents for Modvat purposes. On these facts, the mere mention of the dealer's name or account could not by itself render the invoices ineligible.

Conclusion: Modvat credit was admissible and the denial of credit was unsustainable, in favour of the assessee.

Ratio Decidendi: Where invoices are issued in the assessee's name and the goods are received at the assessee's premises, a dealer endorsement on the invoice does not, by itself, make the document invalid for Modvat credit.

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