Modvat credit on original invoices requires proof of lost duplicate copy and prior satisfaction of the authority.

Modvat credit on the basis of an original invoice was available only when the duplicate copy had been lost in transit and the assessee first placed supporting material before the Assistant Commissioner to satisfy him of that loss. The assessee failed to give prior intimation, produced no corroborative proof, and took credit suo motu, so the requirement was treated as mandatory rather than a mere procedural formality. On those facts, credit on the original invoice was held inadmissible and the Revenue's stand prevailed.

---

---

Issues: Whether Modvat credit could be availed on the basis of the original invoice when the duplicate copy was allegedly lost in transit, without prior intimation to or satisfaction of the Assistant Commissioner.

Analysis: The governing scheme required the duplicate copy of the invoice for availing credit, and where the duplicate was lost in transit, credit on the original invoice was permissible only if the assessee placed the relevant material before the Assistant Commissioner and satisfied him about the loss. The assessee did not inform the Assistant Commissioner, did not produce supporting material such as corroborative proof of loss, and suo motu availed and utilized the credit. The plea that the defect was merely procedural was rejected in view of the Larger Bench rulings distinguishing mandatory substantive requirements from condonable technical lapses.

Conclusion: Modvat credit on the original invoice was not admissible on these facts, and the impugned allowance of credit was set aside in favour of the Revenue.

Final Conclusion: The appeal succeeded and the order allowing credit was reversed, restoring the Revenue's stand that the assessee was not entitled to the credit claimed.

Ratio Decidendi: Where a statutory credit scheme permits use of the original invoice only upon proof of loss of the duplicate copy and satisfaction of the designated authority, the assessee must comply with that mandatory precondition before taking credit.

---