Modvat credit requires a clear documentary trail; undated endorsements and missing invoice particulars justified denial of credit.

Modvat credit was denied where gate passes carried multiple undated endorsements, the corresponding invoice particulars were not furnished, and the prescribed verification documents were absent. The tribunal held that the cited precedent did not authorise automatic credit; it contemplated remand only when the documentary trail was sufficiently clear to enable verification that the goods had passed through subsequent stages and that no intervening person had taken credit. Because the material produced did not satisfy those evidentiary and documentary requirements, the assessee failed to establish entitlement to credit and the departmental denial was sustained.

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Issues: Whether Modvat credit could be allowed on gate passes carrying multiple undated endorsements, without invoice particulars and without the documents prescribed for verification.

Analysis: The claim rested on gate passes showing successive endorsements of sale, but the endorsements were undated and the sale invoice particulars were not furnished. The earlier precedent relied upon did not permit automatic allowance of credit; it contemplated remand for verification only where the evidentiary chain was clear enough to enable the department to satisfy itself that the goods had passed through the subsequent stages and no credit had been taken by any person in the chain. On the facts, the documents produced were insufficient to facilitate proper enquiry and did not conform to the prescribed documentary requirements.

Conclusion: Modvat credit was not admissible on the material produced, and the appeal was rejected.

Final Conclusion: The assessee failed to establish entitlement to Modvat credit on the basis of the documents relied upon, and the departmental denial was sustained.

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