Modvat credit on invalid invoices denied where documents were not issued by the registered person under the excise scheme.

Modvat credit was denied because the invoices were issued in the name of an unregistered entity, not the registered manufacturer, and therefore did not meet the mandatory requirements for valid credit documents under the governing excise scheme and circulars. A minor procedural defect could not cure the fundamental defect in the source and identity of the issuing entity, so the disallowance of credit was upheld.

---

---

Issues: Whether Modvat credit was admissible on invoices issued in the name of an unregistered entity, and whether such invoices could be treated as valid documents for availing credit.

Analysis: The invoices on which credit was claimed bore the name and separate address of M/s. Bela Instruments, which was neither a registered dealer nor a registered trader, while the registered manufacturer was M/s. Bela Plastics. The prescribed Board circular required credit documents to be issued by a manufacturer, depot, wholesaler, distributor/dealer, or importer in the manner contemplated by the Modvat scheme. Since the documents were not issued in the name of the registered manufacturer and did not satisfy the mandatory requirements for valid credit documents, the plea of minor procedural defect could not be accepted. The subsequent communication relied upon by the appellant was not treated as assisting the claim.

Conclusion: Modvat credit was not admissible on the impugned invoices, and the disallowance of credit was upheld.

Ratio Decidendi: Modvat credit can be denied where the supporting invoices are not valid documents issued by the registered person in the manner prescribed by the governing excise scheme and circulars, and a mere procedural deviation does not cure a fundamental defect in the source or identity of the issuing entity.

---