Deemed credit under Notification 58/97-C.E. upheld where invoice defects and partial duty payment did not defeat Modvat entitlement.

Deemed credit under Notification No. 58/97-C.E. remained available where inputs were bought from a manufacturer operating under the compounded levy scheme and the invoice lacked a declaration of payment of appropriate duty. Partial duty payment by the supplier was not sufficient to defeat Modvat credit, particularly when the record did not show that the unpaid balance related to the specific invoice on which credit was claimed. The defect in the invoice declaration, without proof that duty was not effectively paid on the relevant goods, did not negate entitlement to the notification benefit.

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Issues: Whether deemed credit under Notification No. 58/97-C.E. dated 30-8-1997 was admissible to the assessee when the inputs had been purchased from a manufacturer clearing goods under the compounded levy scheme and the invoice did not contain the declaration regarding payment of appropriate duty.

Analysis: The disputed invoices related to goods cleared by the supplier under the compounded levy scheme. The supplier had paid only part of the duty, but the record did not establish that the unpaid balance or the declaration defect negatived the assessee's entitlement to Modvat benefit. The court treated the partial payment of duty as insufficient to deny the credit, especially when it could not be ascertained whether the amount paid related to the particular invoice on which credit was claimed.

Conclusion: The deemed credit was admissible and the assessee was entitled to the benefit of the notification.

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