https://www.taxtmi.com/caselaws?id=184615 Modvat credit could not be denied merely because registered dealers were alleged to have issued spurious or paper invoices, where the duty-paid inputs were shown to have been received in the factory and consumed in manufacture. The assessee had dealt with registered dealers, produced supporting invoices and documents, and paid through account payee cheques; no flow back of funds, collusion, or falsity of the transactions was proved. A lower resale price by the dealers, by itself, was insufficient to establish that the purchases were bogus. On these facts, denial of Modvat credit was not justified and the Revenue's challenge failed. en-us Mon, 06 Aug 2007 00:00:00 +0530 Thu, 14 Jul 2016 11:08:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=184615 Modvat credit could not be denied merely because registered dealers were alleged to have issued spurious or paper invoices, where the duty-paid inputs were shown to have been received in the factory and consumed in manufacture. The assessee had dealt with registered dealers, produced supporting invoices and documents, and paid through account payee cheques; no flow back of funds, collusion, or falsity of the transactions was proved. A lower resale price by the dealers, by itself, was insufficient to establish that the purchases were bogus. On these facts, denial of Modvat credit was not justified and the Revenue's challenge failed. Case-Laws Central Excise Mon, 06 Aug 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=184615