Modvat credit on original invoice allowed where duplicate copy was lost and departmental intimation substantially established the loss.

Modvat credit may be taken on the original invoice where the duplicate copy is lost, if the assessee informs the department and satisfactorily establishes the loss. The governing rule permits credit in such cases, and the fact that inputs were received in the factory and used in manufacture was undisputed. A delay in intimation and the omission of the vehicle number in the affidavit were treated as curable defects, not sufficient grounds to deny credit. On these facts, the credit could not be refused.

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Issues: Whether Modvat credit could be denied when the duplicate copy of the invoice was lost and the assessee sought to take credit on the original invoice after informing the departmental authorities.

Analysis: The inputs were received in the factory and used in the manufacture of final products, and their eligibility for Modvat credit was not in dispute. The only objection was that intimation of loss of the duplicate invoice was given after a gap and the affidavit did not mention the vehicle number. The governing rule framework permits credit on the basis of the original invoice when the duplicate copy is lost, provided the authority is satisfied about the loss. On the facts, intimation had been given to the range superintendent, permission was sought from the Assistant Commissioner, and an affidavit regarding the lost invoice was filed. The absence of the vehicle number in the affidavit was treated as a curable defect, not a ground to deny credit.

Conclusion: Modvat credit could not be denied to the assessee on these facts, and the appeal was allowed.

Ratio Decidendi: Where receipt and use of the inputs are undisputed, Modvat credit on the original invoice cannot be refused merely because the duplicate invoice was lost, if the assessee has informed the department and substantially established the loss.

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