Modvat credit on unregistered dealer invoices depends on strict proof of timely registration under the relaxation.

Modvat credit on an invoice issued by an unregistered dealer was not admissible because the relaxation under the relevant notification and circular applied only where the dealer had obtained registration by the stipulated date. No evidence was produced to show compliance with that condition, including before the Tribunal. In the absence of proof that the dealer satisfied the notified registration requirement within the permitted period, the credit claim failed. The governing principle is that a concession allowing credit on documents issued by an unregistered dealer can be invoked only on strict proof of the prescribed registration condition.

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Issues: Whether Modvat credit could be taken on the strength of an invoice issued by an unregistered dealer where the relevant notification granted relaxation only if the dealer had obtained registration by the stipulated date.

Analysis: The credit was claimed on an invoice issued by an unregistered dealer. The governing notification and circular permitted acceptance of documents issued by unregistered dealers prior to 31-12-1994 only if the dealer had secured registration by that date. No evidence was produced to show that the dealer had been registered within the permitted time, and even before the Tribunal no such proof was furnished. In the absence of proof of compliance with the condition attached to the relaxation, the credit claim could not be sustained.

Conclusion: The claim to Modvat credit was not admissible and the decision was against the assessee.

Ratio Decidendi: A concession permitting credit on documents issued by an unregistered dealer can be availed only on proof that the dealer satisfied the prescribed registration condition within the notified period.

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