Modvat credit on original invoice requires proof of loss of transporter copy in transit; mandatory satisfaction test applies.

Rule 57G(2A) permits Modvat credit on an original invoice only when the manufacturer satisfies the jurisdictional Assistant Commissioner that the duplicate transporter copy was lost in transit. The requirement is one of proof of loss, not merely proof that the inputs were duty paid, received, and used. On the facts discussed, the assessee did not establish that the materials placed before the Assistant Commissioner met this mandatory condition, and the larger bench view treated the requirement as substantive rather than a mere procedural formality. Credit on the original invoice was therefore not made out, and the disallowance of Modvat credit and penalty was upheld.

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Issues: Whether Modvat credit could be taken on the strength of the original invoice when the duplicate for transporter copy was stated to have been lost in transit, and whether the Assistant Commissioner's satisfaction under Rule 57G(2A) was properly established.

Analysis: Rule 57G(2A), introduced by Notification No. 23/94-C.E. (N.T.), permits credit on the original invoice only when the manufacturer satisfies the jurisdictional Assistant Commissioner about loss in transit of the duplicate for transporter copy. The requirement relates to proof of such loss, not merely to the duty-paid nature, receipt, or use of the inputs. The appellants did not raise a proper ground showing how the materials before the Assistant Commissioner were sufficient to satisfy that authority. The larger bench view relied on by the Tribunal also treated the requirement as mandatory and not a mere procedural formality.

Conclusion: The claim for credit on the original invoice was not established, and the disallowance of Modvat credit and penalty was upheld.

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