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

Modvat credit on the basis of the original invoice was unavailable unless the assessee satisfied the Assistant Commissioner that the duplicate invoice had been lost in transit. As no such assertion was made in reply to the show cause notice and no proof of loss was produced, the foundational condition under Rule 57G(2A) was not met. On that basis, credit on the original invoice could not be sustained and was correctly denied.

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Issues: Whether Modvat credit could be availed on the basis of the original invoice when the assessee failed to show that the duplicate copy of the invoice had been lost in transit.

Analysis: Rule 57G(2A) permitted credit on the original invoice only if the manufacturer satisfied the Assistant Commissioner that the duplicate copy had been lost in transit. No such averment was made in reply to the show cause notice, and no proof of loss of the duplicate invoice was produced. In the absence of the foundational requirement prescribed by the rule, the claim for credit on the strength of the original invoice could not be sustained.

Conclusion: Modvat credit on the original invoice was correctly denied, and the issue was decided against the assessee.

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