Modvat credit cannot be denied for a technical invoice defect when receipt and use of inputs are undisputed.

Modvat credit cannot be denied on a mere technical defect in the invoice where receipt of duty-paid inputs and their use in manufacture are undisputed. A printed serial number and a separate internal accounting reference on the invoice were treated as a procedural lapse, not a substantive disqualification. On that basis, the credit was held admissible and the denial unsustainable, with relief granted to the assessee.

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Issues: Whether Modvat credit could be denied merely because the invoice carried two serial numbers, when receipt and use of inputs in the manufacture of final products were not disputed.

Analysis: The denial was based on a technical objection to the invoice format. The invoice bore a printed serial number, while the other number was only an internal accounting reference. The record did not show any dispute about receipt of the inputs in the factory or their use in manufacture. In such circumstances, the objection was treated as a procedural lapse, and the credit could not be refused on that ground alone.

Conclusion: Modvat credit was admissible and the denial was not sustainable.

Final Conclusion: The impugned order was set aside and the assessee was granted relief.

Ratio Decidendi: Modvat credit cannot be denied on a mere technical defect in the invoice where receipt and use of duty-paid inputs for manufacture are otherwise established and undisputed.

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