Modvat credit denied on invoice defects was found unsustainable where the supporting documents and objections were not properly verified.

Modvat credit was disputed on the ground that the supporting documents allegedly did not contain the particulars required under Rule 52A of the Central Excise Rules, 1944. The note records that the documents underlying the show cause notice were examined, the reasons given for reversing credit were found not to exist, and the authorities had not properly verified the invoices relied upon. Fresh objections raised only at the appellate stage were not accepted, and the denial of credit was treated as unsustainable.

---

---

Issues: Whether Modvat credit could be denied on the ground that the documents did not satisfy the particulars required under Rule 52A of the Central Excise Rules, 1944.

Analysis: The documents forming the basis of the show cause notice were examined and the grounds on which credit had been reversed were found not to exist. The authorities had not properly verified the invoices relied upon in the notice, and the fresh objections raised at the appellate stage were not accepted.

Conclusion: The denial of Modvat credit was unsustainable and the appeal was disposed of in favour of the appellant, with costs awarded.

---