Contemporaneous filing evidence bars denial of Modvat credit and penalty where non-receipt of the invoice is unproven.

Contemporaneous acknowledgement of filing can defeat a later claim that a duplicate invoice was not submitted with the RT-12 return. Where the assessee produced the covering letter and departmental acknowledgement showing that the return and accompanying modvatable documents were filed together, the alleged non-filing was not established and the credit denial failed. On the same footing, penalty could not be sustained because it depended on proof of the asserted default, which was absent.

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Issues: Whether Modvat credit could be denied on the ground that the duplicate invoice was allegedly not filed along with the RT-12 return, and whether penalty could be sustained on that basis.

Analysis: The assessee produced the covering letter and acknowledgement showing that the RT-12 return and accompanying modvatable documents had been filed together. No objection was raised at the time of receipt that any invoice was missing. The subsequent objection was held to be untenable because the departmental acknowledgement supported the assessee's case, and delayed scrutiny of returns could not be used to negate receipt of the document. As the alleged non-filing was not established, the foundation for credit denial also failed.

Conclusion: Modvat credit could not be denied on the alleged non-filing of the invoice, and the penalty was not sustainable.

Ratio Decidendi: Where the assessee produces contemporaneous acknowledgement of filing of the return and accompanying documents, Modvat credit cannot be denied on a later unsubstantiated objection of non-receipt, and penalty cannot survive without proof of the alleged default.

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