Modvat credit cannot be denied for loss of duplicate invoice in transit when the rule does not require prior permission.

Modvat credit could not be denied merely because the duplicate invoice was lost in transit or because prior permission to use the original invoice had not been obtained. The governing rule required only proof of such loss, and credit could be refused only if the Assistant Commissioner found that no loss had occurred. A denial based on the transporter's alleged failure to take further precautions, or on any supposed need for post facto approval, was not supported by the rule, so the assessee was entitled to avail the credit.

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Issues: Whether Modvat credit could be denied on the ground that the duplicate copy of the invoice was lost in transit and prior permission for use of the original invoice had not been obtained.

Analysis: The governing rule required only a demonstration that the duplicate invoice had been lost in transit. Prior permission was not a precondition. Credit could be refused only if the Assistant Commissioner found that no such loss had occurred. The denial based on the transporter not taking further precautions, or on the supposed need for post facto approval, was not supported by the rule.

Conclusion: The assessee was entitled to avail the Modvat credit.

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