2016 (5) TMI 1324

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....R), for the Respondent. ORDER The appellants, M/s. Jalan Dyeing & Bleaching Mills had availed credit on Invoice Nos. 145 & 146 both dated 16-5-2003 and Invoice Nos. 7 & 9 both dated 23-4-2003 wherein the appellants were not the consignee. The Invoice Nos. 145 & 146 were in the name of M/s. Chirag Fabrics Pvt. Ltd., Ahmedabad and Invoice Nos. 7 & 9 both dated 23-4-2003 were issued in the name....

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....person involved in purchase and sale of yarn or fabrics falling under Chapter 50-55, 58 or 60, provided that said documents are endorsed in full for the entire consignment covered under the said documents in favour of the manufacturer. It was argued that the invoices were endorsed in favour of the appellants by the persons in whose name the invoices were issued. She argued that in the instant case....

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....2, 53, 54, 55, 58 or 60, or made up textile articles falling under Chapter 63 of First Schedule to the Tariff Act; or (b)     undertaking activities pertaining to manufacture of yarns or fabrics falling under Chapter 50, 52, 53, 54, 55, 58 or 60, ready-made garments falling under Chapter 61 or 62 or made up textile articles falling under Chapter 63 of First Schedule to the T....

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....use on the said goods". The said rule permits availment of credit if the document is endorsed in favour of the manufacturer. In the instant case the endorsement has not been done in the documents but by a separate letter. I find that procedure prescribed in the said sub-rule is for a reason. The original documents cannot be endorsed to more than one person, however, endorsement by a separate le....