Modvat credit on original invoice upheld where duplicate copy was lost in transit and receipt of inputs was undisputed.

Modvat credit was admissible on the basis of the original invoice where the duplicate copy was lost in transit, provided the authority was satisfied that the inputs were received in the factory and duty had been paid. Rule 57G(6) allowed this exception, and the record showed no dispute that receipt of goods or payment of duty was lacking. The loss of the duplicate copy was supported by affidavit, so the factual conditions for credit stood fulfilled and denial of credit was not sustainable.

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Issues: Whether Modvat credit could be allowed on the original invoice when the duplicate copy was lost in transit and the receipt of inputs in the factory and payment of duty were not in dispute.

Analysis: Rule 57G(6) of the Central Excise Rules permitted credit on the basis of the original invoice where the duplicate copy had been lost in transit, subject to the Assistant Commissioner being satisfied that the inputs had been received in the factory and duty had been paid. The record showed no dispute from the Department that the goods had not been received or that duty had not been paid. The loss of the duplicate copy was also explained by affidavit, and the factual foundation required by the rule stood satisfied.

Conclusion: Credit on the original invoice was admissible, and the denial of credit was unsustainable.

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