Strict documentary compliance governs Modvat credit; defective invoices and unmet procedural requirements defeat the concession.

Modvat credit was unavailable where the supporting invoices were not issued in the assessee's name and the prescribed documentary procedure under Rule 52A was not satisfied. The scheme required receipt of inputs under a valid document for the Modvat user, and mere receipt of duty-paid goods was insufficient if the statutory paperwork was defective. Because the invoices were not properly endorsed and the dealer invoices did not establish eligibility as valid Modvat documents, strict compliance with the procedural conditions was treated as essential. The claim to credit therefore failed.

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Issues: Whether Modvat credit was admissible when the supporting invoices were not issued in the assessee's name and the procedural requirements for availing credit were not complied with.

Analysis: The credit scheme required receipt of inputs under a prescribed document, and the invoice under Rule 52A had to be a valid document for the Modvat user. The documents relied on by the assessee did not satisfy that requirement, since the invoices were not endorsed in the assessee's name and the supposed dealer invoices did not establish that they were eligible documents for Modvat purposes. Mere receipt of duty-paid goods was insufficient where the statutory procedure had not been followed, particularly in a scheme susceptible to misuse.

Conclusion: Modvat credit was not admissible, and the denial of credit was upheld against the assessee.

Final Conclusion: Non-compliance with the prescribed documentary procedure defeated the claim to Modvat credit, and the appeal failed.

Ratio Decidendi: Where a fiscal concession is conditional upon prescribed documentary and procedural requirements, those requirements must be strictly satisfied before the benefit can be allowed.

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