Modvat credit cannot be denied for a corrected invoice where inputs were received and credit was started within time.

Modvat credit could not be denied merely because the accounting entry was completed after six months where the inputs had been received within time and the initial credit entry was made within the prescribed period. The Tribunal treated the later delay as arising from correction of the supplier's invoice, including an address-description defect, and held that Rule 57G(2) bars only the commencement of credit-taking after six months, not the completion of the accounting process when substantive compliance is otherwise shown. Because receipt of inputs, duty payment, eligibility, and use in manufacture were undisputed, the minor documentary discrepancy did not defeat the credit. Modvat credit was therefore admissible.

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Issues: Whether Modvat credit could be denied merely because the credit entry was completed after six months when the inputs had been received within time and the delay arose from correction or replacement of the invoice/document.

Analysis: The credit on the first invoice was found to have been initially entered in the records within six months from the date of invoice, and the later delay in completing the accounting entry arose because the supplier's invoice had to be corrected for an address description. The Tribunal followed its earlier view that Rule 57G(2) bars the commencement of credit taking after six months, but does not prohibit completion of the accounting process where receipt of goods and the initial credit entry were made within time. It also treated the discrepancy in description and classification as a minor technical defect that could not defeat substantive Modvat benefit when receipt of inputs, duty payment, eligibility, and use in manufacture were not disputed.

Conclusion: Modvat credit was admissible to the assessee and the Revenue's challenge to the allowance of credit failed.

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