Modvat credit on original invoice cannot be denied for late application where duplicate invoice was lost and inputs were received and used.

Rule 57G(2A) permits Modvat credit on the original invoice where the duplicate copy is lost in transit, subject to the Assistant Commissioner being satisfied about that loss. The loss of the duplicate invoice and the receipt and use of the inputs were not disputed, and the objection was confined to alleged delay in seeking permission. On those facts, denial of credit on a purely technical ground of late application was unwarranted when the substantive requirements of the rule were met, and credit on the original invoice was allowed.

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Issues: Whether Modvat credit could be denied where the duplicate copy of the invoice was lost in transit and the assessee took credit on the basis of the original invoice under Rule 57G(2A), despite alleged late submission of the application.

Analysis: Rule 57G(2A) permits a manufacturer to take credit on the basis of the original invoice when the duplicate copy has been lost in transit, subject to the satisfaction of the Assistant Commissioner. The loss of the duplicate invoice was not disputed, nor was the receipt and use of the inputs in the factory. The authority's objection rested only on the delay in making the application for permission. The requirement under the rule is the satisfaction of the Assistant Commissioner about the loss of the duplicate copy, and denial of credit merely on a technical objection of late application was held to be unwarranted where the substantive conditions stood satisfied.

Conclusion: The denial of Modvat credit was not justified, and the assessee was entitled to credit on the original invoice.

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