Modvat credit allowed on contemporaneous records despite absence of RG23A Part I register

Modvat credit was allowable where the assessee established receipt and use of inputs through contemporaneous records, even though the RG23A Part I register was not maintained. Stock register entries, input invoices, original cardex records, declarations and material receipt notes were treated as sufficient evidence to support the credit claim, and the HC found no error in that conclusion. The absence of the RG23A register did not by itself defeat entitlement to Modvat credit.

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Issues: Whether the assessee was entitled to Modvat credit on inputs used in the manufacture of goods where RG23A Part I register was not maintained, but other contemporaneous documents were produced.

Analysis: The Tribunal had found that, despite the absence of the RG23A Part I register, the assessee had produced stock register entries, input invoices, original cardex records, copies of declaration, and material receipt notes. These documents were held sufficient to establish the receipt and use of inputs and to support the claim for Modvat credit. The Court found no error in that conclusion.

Conclusion: The assessee was entitled to Modvat credit and the absence of the RG23A register did not defeat the claim.

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