Modvat credit cannot be denied solely because dealer registration was cancelled later; earlier invoices remain valid unless independently inadmissible.

Cancellation of a dealer's registration does not retrospectively invalidate invoices already issued, so earlier invoices may still support Modvat credit. Credit cannot be denied solely because the dealer's registration was cancelled later; denial must rest on some independent ground showing the credit is otherwise not admissible. The appellate record therefore clarified that the post-issuance cancellation did not, by itself, render the earlier invoices void ab initio or unusable for credit purposes, and the impugned order remained undisturbed on that basis.

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Issues: Whether cancellation of the dealer's registration rendered invoices issued earlier invalid for availing Modvat credit.

Analysis: The Commissioner (Appeals) had treated the dealer-registration dispute as infructuous, but the appellate record showed a finding touching the status of invoices issued before cancellation. It was clarified that cancellation of registration does not, by itself, make earlier invoices void ab initio or invalid. Credit cannot be denied merely because the dealer's registration was later cancelled, though denial may still follow if Modvat credit is otherwise not admissible on independent grounds.

Conclusion: The earlier invoices remained capable of supporting Modvat credit and were not invalid solely on account of subsequent cancellation of registration.

Final Conclusion: The appeal failed, and the impugned order was left undisturbed with clarification that cancellation of registration alone cannot be used to deny credit on earlier invoices.

Ratio Decidendi: Cancellation of a dealer's registration does not retrospectively invalidate invoices already issued, and credit cannot be denied solely on that ground.

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