Modvat credit on endorsed invoice upheld where dealer's invoice contained required manufacturer details under the notification.

Modvat credit could not be denied merely because the assessee relied on an endorsed invoice where the wholesale dealer's invoice also carried the manufacturer's invoice serial number and date required by the applicable notification. The governing requirement was that the dealer's invoice contain the specified particulars of the manufacturer's invoice, and that condition was satisfied on the facts. Once the actual document was examined against the notification, the alleged defect in the duty-paying document did not survive. The denial of Modvat credit was therefore unsustainable, and the assessee was entitled to the credit.

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Issues: Whether Modvat credit could be denied on the ground that the assessee relied upon an endorsed invoice, when the wholesale dealer's invoice contained the manufacturer's serial number and date as required by the applicable notification.

Analysis: The denial was based on the premise that an endorsed invoice, by itself, was not a valid duty paying document. However, the relevant notification governing invoices issued by wholesale dealers or distributors required the invoice to carry the serial number and date of the manufacturer's invoice. On the facts, the dealer's invoice contained the necessary particulars, and the credit was claimed on that invoice along with the supporting manufacturer's invoice details. The defect relied upon in the impugned order did not survive once the actual document relied upon by the assessee was examined against the notification requirement.

Conclusion: The denial of Modvat credit was not sustainable and the assessee was entitled to the credit.

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