Modvat credit cannot be denied for carbon-signed invoices when duty-paid inputs and their use are undisputed.

Modvat credit could not be denied merely because input invoices bore carbon signatures instead of original signatures where the duty-paid character of the inputs, their receipt in the factory, their use in manufacture, and the production of the invoices were undisputed. The signature defect was treated as a technical, rectifiable irregularity, not a ground to reject credit when the authenticity of the invoices and the matching of signatures were not in dispute.

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Issues: Whether Modvat credit could be denied merely because the invoices bore carbon signatures of the input supplier instead of original signatures.

Analysis: There was no dispute as to the duty-paid character of the inputs, their receipt in the factory, their use in manufacture, or the production of the relevant invoices. The only objection was that the signatures on the invoices were carbon signatures. Such a defect was treated as technical and rectifiable, and not as a basis to deny credit where the authenticity of the invoices and the matching of signatures was not in dispute.

Conclusion: Modvat credit could not be denied on this ground, and the assessee succeeded.

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