MODVAT credit cannot be denied merely because a later-misplaced bill of entry copy is unavailable when receipt and duty payment are undisputed.

MODVAT credit was held not deniable merely because the triplicate copy of the bill of entry was later misplaced for defacement, where the inputs had already been received in the factory under valid supporting documents. Rule 57G(3) required receipt of inputs under specified documents, but the factual findings showed that the goods were duty-paid, their intended use was undisputed, and the assessee produced the exchange control copy from the bank, other records, and an indemnity bond. As receipt and proper initial credit were not disputed, the absence of the triplicate copy at a later stage did not defeat the credit claim.

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Issues: Whether MODVAT credit could be denied merely because the triplicate copy of the bill of entry was subsequently misplaced, when the inputs had been received in the factory under valid supporting documents and the duty-paid nature and intended use of the goods were not disputed.

Analysis: Rule 57G(3) of the Central Excise Rules, 1944 requires receipt of inputs in the factory under specified documents, including a triplicate copy of the bill of entry. On the facts found, the goods had already been received under valid documents, the triplicate copy was misplaced later, and the assessee produced the exchange control copy obtained from the bank together with other supporting records and an indemnity bond. The authorities did not dispute receipt of the goods, their duty-paid character, or their use for the intended purpose. The Tribunal's findings on these factual aspects were unchallenged and showed that the credit had originally been taken on the strength of the proper documents.

Conclusion: MODVAT credit could not be denied on the mere ground that the triplicate copy was not available later for defacement, and the question was answered in favour of the assessee.

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