Mandatory invoice identification under Modvat: identical copy markings without deletion create substantive non-compliance and justify denial of credit.

Rule 52A(3)(ii) was treated as a mandatory safeguard in the Modvat scheme because duty-paying invoices had to be clearly distinguishable as original and duplicate copies. Where every copy bore identical legends such as original, duplicate and triplicate without proper deletion of the extra markings, the resulting ambiguity was held to be a substantive non-compliance, not a mere technical lapse. The defect was considered capable of undermining revenue control and allowing duplication of credit, so Modvat credit could be denied on that basis.

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Issues: Whether Modvat credit could be denied where the invoices used for credit bore the printed legends original, duplicate, triplicate, etc. on all copies without proper deletion of the extra markings, resulting in ambiguity as to the identity of the original and duplicate copies.

Analysis: The requirement under Rule 52A(3)(ii) was treated as a mandatory safeguard in the Modvat scheme because the invoices had to be distinguishable as duty-paying documents. The use of identical legends on every copy, without proper cancellation of the excess markings, created uncertainty as to which copy was original and which was duplicate. Such ambiguity was held to be more than a mere technical defect, since it could permit more than one assessee to avail credit on the same document and would weaken revenue control and verification.

Conclusion: The defect was held to be a substantive non-compliance of Rule 52A(3)(ii), not a curable technical lapse, and the denial of Modvat credit was upheld against the assessee.

Ratio Decidendi: Where duty-paying documents fail to satisfy a mandatory identification requirement designed to prevent duplication and ambiguity, the defect is substantive and Modvat credit can be denied.

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