Modvat credit on stock transfer advice notes turns on proof of book transfer and sale, with remand for factual verification.

Book adjustment on stock transfer advice notes may constitute payment and can amount to a sale, so entitlement to Modvat credit depended on verification of whether such book transfers actually occurred. Because the factual position had to be examined by the original authority, the assessee was to be given an opportunity to adduce further evidence. The matter was remanded for de novo consideration, and the claim to Modvat credit was left to be determined on the basis of that factual inquiry.

---

---

Issues: Entitlement to Modvat credit on stock transfer advice notes and whether the matter required remand for factual verification of book transfer and sale.

Analysis: The Tribunal relied on its earlier ruling that book adjustment can constitute a form of payment and that such transactions may amount to a sale. On that basis, and in the light of the earlier remand order in the appellant's own case, the factual question whether book transfer had in fact taken place had to be examined by the original authority. The assessee was entitled to an opportunity to adduce further evidence, and the claim to Modvat credit would depend on the outcome of that factual inquiry.

Conclusion: The appeal succeeded and the impugned order was set aside with a remand for de novo consideration, leaving the assessee to establish entitlement to Modvat credit before the original authority.

---