Deemed credit under Notification No. 58/97-C.E. depends on invoice declaration certifying duty payment on inputs.

Deemed credit under Notification No. 58/97-C.E. depended on the invoice declaration regarding duty payment on inputs. Where the supplier's invoice certified that the inputs had suffered Central Excise duty, the assessee was not required to independently prove that duty had been discharged by the supplier, and deemed credit was allowable. Where the invoice carried no such declaration, the benefit could not be extended. The operative principle is that entitlement turns on compliance with the notification's declared conditions and the invoice-based certification requirement.

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Issues: Whether deemed credit under Notification No. 58/97-C.E. could be denied where the supplier's invoice certified that the inputs had suffered Central Excise duty, and whether such credit was unavailable where no such declaration was made.

Analysis: The entitlement to deemed credit depended on the terms of Notification No. 58/97-C.E. and the declaration made in the invoices. The governing principle, as applied, was that when the supplier certified payment of duty on the inputs, the assessee was not required to independently prove discharge of duty by the supplier. At the same time, where the invoice contained no declaration at all, the benefit of deemed credit could not be extended on that basis.

Conclusion: Deemed credit was allowable for invoices carrying a declaration that duty had been discharged, and was not allowable where no such declaration was furnished.

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