Modvat credit allowed on certified bill of entry where imported inputs were duty paid and the original document was lost.

Modvat credit was found admissible where imported inputs were duty paid and actually received, but the original bill of entry was lost in transit. The Tribunal treated the certified Customs third copy as sufficient proof of duty payment and receipt of the inputs, holding that the defect was evidentiary only and did not negate eligibility for credit. It also noted the absence of any jurisdictional trade notice prohibiting such credit. On that basis, denial of Modvat credit was unsustainable.

---

---

Issues: Whether Modvat credit was admissible when the original bill of entry accompanying the imported inputs was lost in transit and the credit was taken on the basis of a certified third copy of the bill of entry.

Analysis: The imported inputs were admittedly received and duty had been paid at the time of clearance. The original bill of entry accompanied the goods but was misplaced in transit, and the appellant produced a third copy certified by Customs showing the same duty payment particulars. In these circumstances, the defect was only evidentiary and not a denial of duty payment or receipt of inputs. The Tribunal distinguished the cases relied on by the department and held that the certified Customs copy stood on the same footing for the purpose of establishing the duty-paid nature of the inputs. The absence of a jurisdictional trade notice barring such credit also supported the appellant's claim.

Conclusion: Modvat credit was admissible and the denial of credit was unsustainable.

---