2017 (5) TMI 1330

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....lant by BIL. The inputs are ordered directly by BIL but received directly in the factory of the appellant. However the invoices for such inputs are in the name of BIL but stand endorsed in favour of the appellant. The dispute (for the period 01/04/1994 to 31/10/1994) is that CENVAT credit amounting to Rs. 12,87,992/- has been disallowed for the reason that availment of credit on the basis of endorsed invoices for the above period is irregular particularly in view of the change in the position of rules w.e.f. 01/04/1994. With effect from this date, it was specified in the Central Excise Rules that the goods are to be cleared from the manufacturer under cover of invoices which replaced the earlier gate passes. Since both the authorities below....

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.... goods on payment of duty and on which the credits were allowed to be taken, have been replaced by "invoices". Upto 01/04/1994, credits were allowed on the basis of gate passes with upto two endorsements. However in the changed procedure w.e.f. 01/04/1994, this was not permitted. The new procedure brought out two categories of dealers  first and second stage dealers who were allowed to issue invoices based on which such credits can be taken. The facts in the present case are that during the period 01/04/1994 to 31/10/1994, the appellant availed such CENVAT credit on the basis of invoices in favour of BIL which were endorsed in favour of the appellant. It is easily seen that in terms of the new procedure effective from 01/04/1994, CENVA....

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.... seen that the short controversy that arises in this appeal is whether respondent-assessee was entitled to take Cenvat credit on the inputs on the basis of documents endorsed by the consignee. We notice that in exercise of powers under Rule 57G of the Central Excise Rules, 1944, the Central Government under notification dated 30-3-1994 prescribed invoices issued by a manufacturer from his factory or depot or wholesale distributor or dealer of a manufacturer who has bought the excisable goods either from the manufacturer at the factory or from the manufacturer's depot or an importer from his godown subject to certain conditions, as document for the purpose of said Rules. Likewise, under notification dated 4-7-1994, the Central Government....