Modvat credit on original invoice upheld where duplicate was lost and substantive receipt-and-use conditions were satisfied.

Modvat credit under Rule 57G(2A) was available on the original invoice where the duplicate copy was lost in transit, provided the Assistant Commissioner was satisfied about the loss and about the duty-paid nature, receipt, and use of the inputs in manufacture. The record showed that these substantive conditions were met, so the objection that prior permission was required before adjudication was rejected. Minor procedural or technical irregularities in the invoice copy used did not defeat otherwise admissible credit.

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Issues: Whether Modvat credit could be denied merely because the assessee took credit on the original copy of the invoice, where the duplicate copy was stated to have been lost in transit and the Assistant Commissioner was satisfied about the duty-paid nature of the inputs, their receipt and use in manufacture.

Analysis: Rule 57G(2A) permits credit on the original invoice when the duplicate copy is not available, subject to the satisfaction of the Assistant Commissioner. The adjudicating authority had recorded such satisfaction after being satisfied about the loss of the duplicate invoice, the duty-paid character of the inputs, their receipt in the factory, and their utilisation in the manufacture of final products. The objection that prior permission should have been obtained before adjudication was rejected, as the record showed that the statutory condition was met. The view that minor procedural and technical irregularities should not defeat otherwise admissible credit was applied.

Conclusion: Credit could not be denied on the facts found, and the Revenue's challenge failed.

Ratio Decidendi: Where the competent authority is satisfied under Rule 57G(2A) that the duplicate invoice was lost and the substantive conditions for credit are met, Modvat credit cannot be denied for a mere procedural defect in the form of the invoice copy used.

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