Modvat credit on certified Bill of Entry upheld where original was lost and inputs' receipt and use were undisputed.

Where receipt and use of inputs were undisputed, and the assessee produced a certified copy of the Bill of Entry after the original was lost, the dispute was treated as one of factual appreciation rather than a substantial question of law under Section 35G(3) of the Central Excise Act, 1944. The High Court therefore held that no reference was warranted and upheld the assessee's entitlement to Modvat credit on the basis of the certified copy. The reference application was rejected.

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Issues: Whether any substantial question of law arose from the Tribunal's order so as to warrant reference under Section 35G(3) of the Central Excise Act, 1944, and whether the assessee was entitled to Modvat credit on the basis of the reconstructed certified copy of the Bill of Entry.

Analysis: The Tribunal had found that the receipt of inputs, their use in the manufacture of final products, and the original production of the triplicate Bill of Entry were not disputed by the Department. It also accepted that the assessee had later obtained a certified copy from the Department after the original was lost during shifting of office. On these facts, the dispute was treated as one of factual appreciation rather than one giving rise to any substantial question of law.

Conclusion: No substantial question of law arose. The assessee was held entitled to Modvat credit on the basis of the certified copy of the Bill of Entry, and the reference application was rejected.

Final Conclusion: The challenge to the Tribunal's order failed, and the assessee's entitlement to Modvat credit was left undisturbed.

Ratio Decidendi: Where receipt and use of inputs are undisputed and a certified copy of the relevant customs document is produced after loss of the original, the matter does not raise a substantial question of law for reference.

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