Credit on returned goods may survive loss of original invoices where duty-paid goods and non-availment of double credit are proved.

Credit on returned goods cannot be denied merely because the original invoice is missing if the assessee can otherwise prove receipt of the same goods, their duty-paid character, and that no double credit was taken. Supporting evidence is also needed to show that the buyer did not avail credit on the original invoice, or that any such credit was reversed, together with proof identifying the goods. Because collateral evidence could still be produced, the matter required fresh verification by the adjudicating authority, and the denial of credit was not sustained as a final conclusion.

---

---

Issues: Whether credit on returned goods could be denied merely because the original invoices were lost and photocopies were produced instead.

Analysis: Credit on returned goods cannot be denied solely for want of the original invoice if the assessee can otherwise establish receipt of the same goods, their duty-paid character, and that no double benefit was taken on the original documents. The record also required proof that the buyers had not availed credit on the original invoices or that any such credit stood reversed, along with evidence establishing the identity of the goods. As the assessee was given an opportunity to produce collateral evidence, the matter required fresh examination by the adjudicating authority.

Conclusion: The denial of credit was not sustained as a final matter and the case was remanded to the original adjudicating authority for verification of the supporting evidence.

---