Deemed Modvat credit on C.R. Sheets accepted where supporting records proved receipt despite missing duty documents.

Deemed Modvat credit was available on C.R. Sheets where the assessee produced RG 23A Part I, RT 12 returns and supporting vouchers showing receipt and description of the inputs. The denial based on absence of duty-paying documents and allegedly incomplete records was not supported by the evidence on record, and the deemed credit scheme was recognised as operating where such documents were unavailable. The claim was confined to C.R. Sheets and did not extend to Copper, Brass Sheets or Strips. The disallowance to the extent of C.R. Sheets was set aside in favour of the assessee.

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Issues: Whether deemed Modvat credit was admissible on C.R. Sheets where the assessee claimed that the goods were covered by the relevant deemed credit order and that documentary evidence showing receipt and description of the inputs had been produced.

Analysis: The dispute related only to the denial of credit on C.R. Sheets. The lower authorities had rejected the claim mainly on the grounds that duty-paying documents were not produced and that the description of the goods in the records was incomplete. On the record, the assessee had produced RG 23A Part I, RT 12 returns and supporting vouchers showing the inputs as C.R. Sheets. Deemed credit is intended to operate where actual duty-paying documents are not available, and the finding that no supporting material existed was not borne out by the evidence. The claim was also confined to C.R. Sheets and not to the separate items of Copper, Brass Sheets and Strips.

Conclusion: Deemed Modvat credit on C.R. Sheets was held admissible, and the disallowance to that extent was set aside in favour of the assessee.

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