Modvat credit for CVD was upheld where Customs verification confirmed duty payment despite only a xerox duplicate bill of entry.

Modvat credit of CVD was held admissible where the import and duty payment had been verified by the Customs House, because entitlement was established on merits despite production of only a xerox copy of the duplicate bill of entry. Denial of credit on that ground alone was treated as unduly technical, and a reconstructed duplicate or its verified equivalent was considered sufficient to prove the claim. The assessee was therefore entitled to the credit.

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Issues: Whether Modvat credit of CVD was admissible when supported by a xerox copy of the duplicate bill of entry, in view of verification by the Customs House confirming payment of CVD.

Analysis: The import of the machinery and payment of CVD had already been verified by the Customs House. Once the factual position was confirmed on merits, denial of credit merely because the document produced was a xerox copy of the duplicate bill of entry was held to be an unduly technical approach. A reconstructed duplicate document, or its functional equivalent through verification, was treated as sufficient for the purpose of establishing entitlement to credit.

Conclusion: The credit could not be denied on such technicality, and the assessee was entitled to the Modvat credit.

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