Modvat credit on manufacturer depot invoices treated as valid supporting documents under the excise rules.

Modvat credit was admissible on invoices issued by a manufacturer's registered depot where the goods were cleared after duty payment and the depot formed part of the manufacturer's set-up. Reading Rule 52A, Rule 57GG and Rule 57G together, such depot invoices were treated as valid supporting documents, and there was no legal infirmity in relying on them for credit. Notification No. 32/94-C.E. (N.T.) also recognised invoices issued by a manufacturer from the factory or depot as eligible documents for Modvat credit.

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Issues: Whether Modvat credit was admissible on invoices issued by the manufacturer's depot though the invoices were alleged not to satisfy the requirements of Rule 52A or Rule 57GG of the Central Excise Rules, 1944.

Analysis: The invoices were issued by the sale depot of the manufacturer, and the record indicated that the depot was part of the registered manufacturer's set-up and that the goods were sold after duty payment from the depot. On reading Rule 52A, Rule 57GG and Rule 57G together, there was no legal infirmity in treating such depot invoices as valid supporting documents. Notification No. 32/94-C.E. (N.T.) dated 4-7-1994 also prescribed invoices issued by a manufacturer from the factory or his depot as eligible documents for Modvat credit.

Conclusion: Modvat credit was admissible and the assessee's invoices were valid documents for the purpose of credit.

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