Court allows Modvat credit based on certified photocopies, grants relief to appellants

The appellants were granted Modvat credit despite presenting certified photocopies of lost invoices, as the duty paid nature of the capital goods was acknowledged and not disputed by the Department. Citing relevant legal precedents, the court allowed the credit based on the certified photocopies, leading to the setting aside of the impugned order. The appellants were deemed entitled to avail the Modvat credit of the disputed amount, and their appeal was allowed with any consequential relief permissible under the law.

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Issues: Denial of Modvat credit based on certified photocopy of invoices

In this appeal, the issue pertains to the denial of Modvat credit to the appellants based on the certified photocopy of the invoices issued by the supplier of the capital goods. The appellants had lost both the duplicate and original copies of the invoices, but they obtained certified photocopies from the supplier, which were not disputed by the Department. The main contention was whether the appellants were entitled to take credit based on certified photocopies, considering the duty paid nature of the capital goods received and utilized in manufacturing final products.

The learned counsel argued that the appellants should be allowed to take credit based on certified photocopies since both original and duplicate invoices were lost, and there was no dispute regarding the duty paid nature of the capital goods. The counsel relied on legal precedents such as Dhaulagiree Polyolefins (Pvt.) Ltd. v. CCE, Jayco India Pvt. Ltd. v. CCE, and Kochi Refineries Ltd. v. CCE, where Modvat credit was allowed under similar circumstances.

On the other hand, the learned SDR reiterated the correctness of the impugned order, which denied the Modvat credit based on certified photocopies of the invoices.

Upon reviewing the record, it was found that the appellants had lost both copies of the invoices but obtained certified photocopies from the supplier, which were not disputed by the Department. The duty paid nature of the capital goods received and utilized by the appellants was also acknowledged. Citing the legal precedents mentioned earlier, it was held that Modvat credit on certified photocopies of invoices was admissible in such circumstances. Therefore, the appellants were deemed entitled to avail the Modvat credit of the disputed amount.

Consequently, the impugned order was set aside, and the appeal of the appellants was allowed with any consequential relief permissible under the law.

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