Curable procedural defect in Modvat invoices cannot by itself defeat credit; matter remanded for fresh verification.

Modvat credit could not be denied solely because second-stage dealers' invoices lacked prior authentication. The defect was treated as a curable procedural lapse, and substantial benefit was not to be refused on that ground alone. The proper course was to permit authentication of the invoices and have the credit claim examined afresh by the jurisdictional authority. The result was a remand for verification and reconsideration of Modvat credit after compliance with the authentication requirement.

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Issues: Whether Modvat credit could be denied merely because second stage dealers' invoices were not pre-authenticated, or whether the defect was curable and the matter liable to be remanded for authentication.

Analysis: The invoices were rejected only on the ground of absence of prior authentication under the relevant Modvat procedure. The defect was treated as a minor procedural lapse capable of subsequent rectification, and it was accepted that substantial benefit should not be denied merely for such a curable defect. The proper course was to allow the assessee to get the invoices authenticated and to have the claim examined afresh by the jurisdictional authority.

Conclusion: The denial of credit was not sustained as final; the matter was remanded for authentication of the invoices and reconsideration of Modvat credit in favour of the assessee.

Ratio Decidendi: A minor procedural defect in Modvat documentation that is capable of later cure should not by itself defeat credit, and the claim may be remanded for verification and grant of benefit upon compliance.

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