Mandatory authentication of dealer invoices for Modvat credit prevents misuse and justifies denial when the statutory safeguard is unmet.

Dealer-issued invoices for imported goods had to be authenticated by the proper officer under Rule 57G(3)(i) before Modvat credit could be taken. The authentication requirement was treated as mandatory because it operated as a safeguard against misuse of credit through multiple invoices for the same goods. The Tribunal distinguished cases involving minor defects in manufacturers' invoices and held that such leniency could not be extended where the statutory condition for dealer's invoices was not fulfilled. Credit was therefore correctly denied, and the demand and penalty were upheld.

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Issues: Whether Modvat credit could be allowed on dealer-issued invoices that were not authenticated by the proper officer under Rule 57G(3)(i).

Analysis: The requirement of authentication of invoices issued by a dealer of imported goods was treated as mandatory. The absence of such authentication was held to create a risk of misuse of Modvat credit through multiple invoices for the same goods. The Tribunal distinguished decisions dealing with minor defects in manufacturer's invoices and held that the same leniency could not be extended to dealer's invoices where the statutory safeguard was not complied with.

Conclusion: The credit was correctly denied, and the demand and penalty were upheld.

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