Modvat credit on original invoice rejected where loss of duplicate invoice in transit was not proved.

Modvat credit on an original invoice was permissible only in the exceptional case where the duplicate invoice was proved lost in transit and the jurisdictional authority was satisfied of that fact. The governing scheme required credit to be taken on the duplicate invoice, and the Board circular confirmed that the original invoice could be used only in those limited circumstances. As the record did not establish loss of the duplicate invoice in transit, credit on the original invoice was disallowed and the appeal failed.

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Issues: Whether Modvat credit could be availed on the basis of the original invoice when the duplicate invoice was not shown to have been lost in transit.

Analysis: The governing scheme required credit to be taken on duplicate invoices, and use of the original invoice was only an exceptional facility where the duplicate copy had been lost in transit and the jurisdictional authority was satisfied about that fact. The circular issued by the Board also stated that credit against the original invoice was permissible only in such exceptional circumstances. The record did not show that the appellant had established loss of the duplicate invoice in transit. The circular was binding on the department, and the impugned order had proceeded consistently with that position.

Conclusion: Modvat credit on the original invoice was not allowable, and the appeal failed.

Ratio Decidendi: Credit on the original invoice can be permitted only when the duplicate invoice is proved to have been lost in transit and the prescribed authority is satisfied on that fact; otherwise, credit must be taken only on the duplicate invoice.

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