Modvat credit on photocopies may be allowed where originals are lost and duty-paid use is verified

Modvat credit may be supported by photocopies of invoices and related documents where the originals are lost, if the loss is substantiated and the available records establish duty payment and receipt of inputs. The text notes supporting evidence such as a driver's statement, a photocopy of the FIR, and a certificate from the jurisdictional Central Excise officer confirming the correctness of the documents and their use in manufacture. It further notes that the department did not dispute the duty-paid character or utilisation of the inputs, and refers to Board Circular No. 441/7/99-CX dated 23-2-99 as supporting credit on available copies.

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Issues: Whether Modvat credit could be allowed on the strength of photocopies of invoices and related documents when the originals were stated to have been lost.

Analysis: The respondents produced material showing loss of the relevant documents, including a driver's statement and a photocopy of the FIR. They also produced a certificate from the jurisdictional Central Excise officer certifying the correctness of the documents, the duty-paid nature of the inputs received in the factory, and their utilisation in manufacture. The department did not dispute the duty-paid character of the inputs or their use. In these circumstances, and in view of Board Circular No. 441/7/99-CX. dated 23-2-99, the record supported grant of Modvat credit on the available copies.

Conclusion: Modvat credit was rightly allowed on the photocopies and the appeal by the Revenue failed.

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