Modvat credit survives clerical invoice errors when delivery records and factory use prove actual receipt of inputs.

Modvat credit cannot be denied merely because an invoice contains an incorrect delivery address where the delivery challan, supplier's clarification, and records show receipt and use of the inputs at the factory. A clerical mistake in invoice particulars does not defeat credit when the goods were received at the correct premises, the Department cannot prove delivery elsewhere, and RG registers support utilisation in manufacture. Minor discrepancies in documentation, absent any prejudice to actual receipt or use of inputs, are insufficient to reject the claim. On these facts, denial of Modvat credit was unjustified and the credit was admissible.

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Issues: Whether Modvat credit could be denied merely because the invoice mentioned an incorrect delivery address when the delivery challan, supplier's clarification, and records showed receipt and use of the inputs at the factory.

Analysis: The invoice bore the appellant's name and correct office address, while the delivery challan showed the correct factory delivery address. The discrepancy in the invoice regarding the place of delivery was supported by the supplier's clarification that it was a clerical mistake. The Department did not establish that the goods were actually delivered elsewhere or that the inputs were not received and used in manufacture. The entries in the relevant RG registers and the absence of any dispute about utilisation of the inputs supported the appellant's claim. Minor discrepancies in invoice particulars, without prejudice to receipt and use of goods, were held not to defeat Modvat credit.

Conclusion: The denial of Modvat credit was unjustified and the assessee was entitled to the credit.

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