Credit on inputs cannot be denied merely for lost duty-paying documents if authenticated copies and input use are verified.

Credit on inputs could not be denied merely because the original duplicate duty-paying documents were reported lost, including where records were affected by fire. The Tribunal held that authenticated photocopies could not be rejected mechanically and that entitlement to credit had to be examined after proper verification of the receipt and use of inputs in manufacture of final products. It also noted that the show cause notice did not clearly explain the alleged irregular availment of credit. The matter was therefore remanded to the original authority for fresh determination of credit eligibility on the basis of the authenticated copies and supporting verification.

---

---

Issues: Whether credit could be denied solely because the duplicate duty-paying documents were lost, and whether authenticated photocopies of those documents could be considered for allowing the credit.

Analysis: The appeal concerned credit taken on inputs where the original duplicate invoices were stated to have been lost, and the records were also affected by fire. The show cause notice did not clearly explain how the credit was alleged to have been taken without duty-paying documents. The Tribunal noted that the appellant claimed to have filed the necessary declarations and copies before the Range Superintendent, and that the authenticity and receipt of the inputs required proper verification. In these circumstances, photocopies authenticated by the Range Office could not be rejected mechanically, and the eligibility to credit had to be examined after due verification of receipt and use of the inputs in the manufacture of final products.

Conclusion: The matter was required to be re-determined by the original authority, and the impugned order was set aside with a remand for verification of the authenticated photocopies and the appellant's entitlement to credit.

Final Conclusion: The assessee obtained a remand for fresh consideration of credit eligibility on the strength of authenticated copies of the duty-paying documents.

Ratio Decidendi: Where original duplicate duty-paying documents are stated to be lost, credit cannot be denied without verifying authenticated copies and the actual receipt and use of inputs in manufacture.

---