Modvat credit cannot be denied for endorsed invoices where receipt of inputs and document correlation are established.

Modvat credit could not be denied solely because the supplier's invoices were first issued in the name of the holding company and later endorsed to the appellant, where receipt of the inputs at the appellant's factory and correlation between the goods and the documents were established. The Tribunal applied the principle that credit is not defeated by an initial misdescription in the invoice when the substantive conditions of receipt and identity of the inputs are satisfied. On that basis, the denial of credit was set aside in favour of the appellant.

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Issues: Whether Modvat credit could be denied merely because the invoices accompanying the inputs were initially raised in the name of the holding company and later endorsed in favour of the appellant, when the receipt and correlation of the goods stood established.

Analysis: The dispute concerned denial of Modvat credit on inputs received directly by the appellant's factory, where the supplier's invoices were made out to the holding company and then endorsed to the appellant. The Tribunal applied the settled principle that credit cannot be denied when the inputs are received and the necessary correlation between the goods and the documents is established, even if the invoices were initially issued to a trader or another person and later produced through endorsement.

Conclusion: Modvat credit could not be disallowed on this ground, and the denial of credit was set aside in favour of the appellant.

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