Modvat credit on original invoice allowed despite lost duplicate, with substantial compliance accepted for procedural requirements.

Modvat credit was held available on the original invoice where the duplicate copy was lost in transit, because entitlement depended on the rule in force when credit was actually taken, not merely when the invoice was issued. As Rule 57G(2A) had come into force before the credit was claimed, the assessee could rely on it. Non-filing of the prescribed application under the trade notice was treated as a procedural requirement, and substantial compliance was accepted when the assessee offered to furnish an undertaking. The denial of credit was set aside, and credit was permitted subject to compliance with the directed undertaking.

---

---

Issues: Whether credit could be taken on the original invoice after the duplicate copy was lost, when Rule 57G(2A) had come into force before the credit was actually taken, and whether non-compliance with trade notice formalities disentitled the assessee.

Analysis: The entitlement to credit depended on the rule in force on the date credit was taken, not merely on the date of invoice. Since credit was taken after insertion of Rule 57G(2A), the assessee was entitled to its benefit. The duplicate invoice was treated as lost in transit. The requirement of filing the prescribed application was treated as a procedural formality, and the offer to furnish an undertaking was held sufficient to satisfy the spirit of the departmental instructions.

Conclusion: The assessee was entitled to Modvat credit on the original invoice, subject to furnishing the undertaking directed by the Tribunal.

Final Conclusion: The impugned denial of credit was set aside and the assessee was permitted to avail and utilise the credit in accordance with law upon compliance with the directed undertaking.

Ratio Decidendi: Where a credit entitlement rule has come into force before credit is taken, the assessee may claim the benefit of that rule even if the invoice predates it, and procedural requirements relating to loss of duplicate documents may be satisfied by substantial compliance.

---