Modvat credit cannot be denied solely for delayed dealer registration; eligibility still requires factual verification.

Modvat credit could not be refused merely because the supplier's dealer registration was obtained after the invoice date. Notification No. 64/94 clarified that documents issued by a registered person before registration could still be accepted if that person was otherwise eligible to issue the invoice under Notification No. 15/94. A blanket rejection without considering this clarification was unsustainable, but entitlement still depended on factual verification of the supplier's eligibility. The matter therefore required examination by the original authority for verification of the relevant facts before credit could be allowed.

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Issues: Whether Modvat credit could be denied merely because the dealer issuing the invoice was registered after the invoice date, in the light of Notification No. 64/94 dated 7-11-1994.

Analysis: The dispute concerned denial of Modvat credit on the premise that the supplier was neither an importer nor a dealer at the relevant time and that the invoices were issued before the dealer registration scheme came into force. Notification No. 64/94 dated 7-11-1994 clarified that documents issued by a registered person prior to registration could still be accepted if the person was otherwise eligible to issue the invoice or document under Notification No. 15/94. The rejection of the claim without considering this clarification was not sustainable. Since entitlement depended on factual verification, the matter required examination by the original authority.

Conclusion: Modvat credit could not be denied solely on the ground of subsequent registration of the supplier, and the matter was remanded for verification of eligibility.

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