Modvat credit cannot be denied for unregistered depot invoices where notifications expressly recognise depot-issued documents.

Modvat credit could not be denied merely because invoices were issued from a depot that was not separately registered, where the applicable notifications expressly recognised invoices issued by a manufacturer, his factory or depot. The notifications did not impose any additional registration requirement for the depot, so invoice eligibility depended on whether the document fell within the recognised categories. As the invoices were issued by depots covered by the notifications, denial of credit on the ground of non-registration was unsustainable, and the assessee remained entitled to the credit and consequential relief in law.

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Issues: Whether Modvat credit could be denied on the ground that the inputs were purchased against invoices issued from a depot that was not registered, when the relevant notifications recognised invoices issued by a manufacturer, his factory or depot.

Analysis: The notifications relied upon by the parties prescribed invoices issued by a manufacturer, his factory or depot as acceptable documents for Modvat credit. The provisions did not impose any requirement that the depot must separately be registered. Since the invoices in question were issued by depots recognised under the notifications, the absence of depot registration could not be used to deny credit.

Conclusion: The Modvat credit was correctly availed and the denial of credit was unsustainable; the finding is in favour of the assessee.

Final Conclusion: The appeal succeeded, and the assessee was held entitled to the credit and the consequential relief available in law.

Ratio Decidendi: Where a notification expressly recognises invoices issued by a manufacturer, his factory or depot, credit cannot be denied merely because the depot is not separately registered, absent any express statutory requirement of such registration.

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