Modvat credit on defective PSU invoices was not denied where the irregularity was only procedural and verifiable.

Modvat credit could not be denied merely because invoices issued by a Public Sector Undertaking were not in the prescribed form under Notification No. 33/94-(N.T.). The defect was treated as a verifiable procedural irregularity, since the invoices contained duty-paying particulars and identifying details sufficient to establish authenticity. The notification was understood as facilitating verification rather than creating a substantive bar to credit. On that basis, the invoice defect was curable and denial of credit was not justified; the assessee was entitled to the credit.

---

---

Issues: Whether Modvat credit could be denied merely because the invoices issued by a Public Sector Undertaking were not in the prescribed form under Notification No. 33/94-(N.T.) dated 04.07.1994.

Analysis: The credit was taken on invoices issued by a Public Sector Undertaking, and the objection was confined to the form of the invoices. The defect was treated as one capable of verification by the department, and the notification was understood as requiring duty-paying particulars and identifying details mainly to facilitate verification of authenticity. In these circumstances, the invoice irregularity was regarded as a curable procedural deficiency rather than a substantive ground to deny credit.

Conclusion: Denial of Modvat credit was not justified and the assessee was entitled to the credit.

---