Modvat credit cannot be denied for invoicing irregularity where duty-paying documents and essential conditions are otherwise satisfied.

Modvat credit was held admissible where invoices were issued by a registered dealer through a branch office, while the goods were received by the concerned branch and the documents were otherwise accepted as duty paying documents. The Tribunal applied its earlier decision and held that credit could not be denied merely because the dealer's invoicing pattern was irregular, especially where no action had been taken against the dealer. Once the essential conditions for credit were satisfied and the documents were valid, the substantive Modvat benefit could not be refused. Denial of credit was therefore unsustainable.

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Issues: Whether Modvat credit could be denied to the assessee on the ground that the invoices were issued through a dealer's branch office and not in favour of the registered dealer's other office, when the goods were received and the documents were otherwise treated as duty paying documents.

Analysis: The assessee took credit on invoices issued by a registered dealer, and the goods were directly received by the branch office concerned. The Tribunal held that the present facts were covered by its earlier decision, and that the credit could not be denied merely because of an irregularity in the dealer's invoicing pattern, especially when no action had been taken against the dealer. The substantive benefit of Modvat credit could not be refused once the essential conditions were fulfilled and the documents were valid duty paying documents.

Conclusion: Modvat credit was admissible and the denial of credit was unsustainable.

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