Modvat credit on original invoices and interest on delayed refund were upheld under the exception for lost duplicate copies.

Modvat credit was admissible on original invoices where the duplicate copy had been lost in transit, because the governing rule and supporting notification expressly allowed credit if the proper authority was satisfied that the inputs were received and duty had been paid; the assessee was therefore entitled to credit. Interest on delayed refund of excise duty on exported goods was payable from the date the refund claim was filed, because the refund had become due on that date and could not be withheld through adjustment against non-final demands; the assessee was therefore entitled to statutory interest from the claim date.

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Issues: (i) whether Modvat credit was admissible on the strength of original copies of invoices where duplicate copies were not available; and (ii) from what date interest was payable on delayed refund of excise duty on exported goods.

Issue (i): Whether Modvat credit was admissible on the strength of original copies of invoices where duplicate copies were not available.

Analysis: Rule 57G permitted credit subject to documentary compliance, but sub-rule (6) created an exception enabling credit on the original invoice where the duplicate copy was lost in transit and the proper authority was satisfied that the inputs were received and duty had been paid. The scheme was treated as beneficial in nature and not to be defeated by a technical construction. The Tribunal also noted the supporting notification that specifically enabled such credit on the original invoice in the stated circumstances.

Conclusion: Modvat credit was admissible to the assessee on the original invoices.

Issue (ii): From what date interest was payable on delayed refund of excise duty on exported goods.

Analysis: Interest on delayed refund was governed by the provision for delayed refunds, and the authorities could not defeat the refund claim by adjusting it against demands that had not attained finality. Since the refund became due on the filing of the claim and the payment was withheld by an impermissible adjustment, the delay attracted statutory interest from the date the claim was lodged.

Conclusion: Interest was payable from the date of filing of the refund claim.

Final Conclusion: The assessee succeeded on both issues and obtained consequential relief on the refund-related claim.

Ratio Decidendi: Where the governing rules and notification permit credit on an original invoice upon loss of the duplicate in transit, and where refund is wrongly adjusted against non-final demands, the assessee remains entitled to Modvat credit and to interest on delayed refund from the date of the claim.

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