Strict compliance with credit notification conditions governs deemed Modvat credit; defective invoices defeat the claim despite no notice to the supplier.

Deemed Modvat credit under Notification No. 58/97-C.E. was unavailable because the supplier's invoices did not correctly disclose the invoice price, triggering the notification's express bar. The absence of a show cause notice to the supplier did not confer any enforceable right on the claimants or cure the defective invoices, and the claimants could have sought rectification from the supplier but did not do so. A cited precedent was found inapplicable because it arose in a different statutory context, and the denial of credit was upheld.

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Issues: Whether deemed Modvat credit under Notification No. 58/97-C.E. dated 30.08.1997 could be denied where the supplier's invoices did not correctly disclose the invoice price and no show cause notice had been issued to the supplier.

Analysis: The entitlement to deemed Modvat credit depended on compliance with the conditions of the notification. The invoices issued by the supplier did not correctly disclose the invoice price, attracting the specific bar contained in clause (5) of the notification. The absence of a show cause notice to the supplier did not create any enforceable right in favour of the appellants to claim the credit. If the invoices required rectification, the appellants could have sought correction from the supplier; that course was not taken. The cited precedent was held inapplicable because it dealt with a different statutory context.

Conclusion: The appellants were not entitled to deemed Modvat credit under the notification, and the denial of credit was upheld.

Ratio Decidendi: A benefit under a conditional exemption or credit notification cannot be claimed unless its prescribed requirements are strictly complied with, and failure to proceed against the supplier does not cure a substantive defect in the documents on which the credit claim rests.

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