Deemed Modvat credit requires proper duty-payment declaration on invoice, but binding precedent barred Revenue's challenge.

Deemed Modvat credit under Notification No. 58/97-CE (N.T.) was linked to receipt of inputs under an invoice declaring that the appropriate excise duty had been paid under Section 3A of the Central Excise Act, 1944. The note states that the dispute on admissibility of such credit was already covered against the Revenue by an earlier Division Bench ruling, and a similar appeal had been dismissed on the same basis. It therefore records that no substantial question of law arose on the Revenue's challenge, and the assessee's position prevailed.

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Issues: Whether deemed Modvat credit under Notification No. 58/97-CE (N.T.) dated 30.8.97 could be denied where the invoice did not contain the required declaration of duty payment under Section 3A of the Central Excise Act, 1944, and whether the appellate order suffered from travelling beyond the show cause notice.

Analysis: The dispute turned on the admissibility of deemed credit under the notification and the accompanying rule, which required receipt of inputs under an invoice declaring that the appropriate duty of excise had been paid under Section 3A of the Central Excise Act, 1944. The Court noted that the controversy stood covered against the Revenue by an earlier Division Bench decision, and that a similar appeal had already been dismissed on the same legal basis. In that view, no substantial question of law arose for consideration.

Conclusion: The issue was decided in favour of the assessee and against the Revenue.

Ratio Decidendi: Where the controversy on admissibility of deemed Modvat credit under the relevant notification is already covered by binding precedent, no substantial question of law arises and the Revenue's challenge fails.

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