Modvat credit on original invoice permitted where duplicate invoice was lost in transit and genuineness was established.

Rule 57G(2A) of the Central Excise Rules, 1944 allowed Modvat credit on the original invoice where the duplicate copy was lost in transit, subject to the Assistant Collector being satisfied about the genuineness of the claim. The provision required disclosure of relevant facts and bona fides, not proof as in a penal proceeding, and the authority had to consider whether the loss was genuine and whether misuse was likely. On the stated facts, supporting declarations from the transporter and driver and the lodging of an FIR established bona fides, with no suspicious material indicating misuse. Credit on the original invoice was therefore allowable.

---

---

Issues: Whether Modvat credit could be availed on the strength of the original invoice when the duplicate invoice was stated to have been lost in transit and the Assistant Collector was satisfied about the genuineness of that claim.

Analysis: Rule 57G(2A) of the Central Excise Rules, 1944 permitted credit on the original invoice where the duplicate copy had been lost in transit, subject to the satisfaction of the Assistant Collector. The provision required disclosure of all relevant facts and bona fides, not proof in the nature of a penal proceeding. The authority had to examine whether the claim of loss was genuine and whether there was any likelihood of misuse. On the facts, the appellant had produced supporting declarations from the transporter and driver, and an FIR had been lodged. Nothing suspicious emerged from the record to doubt the bona fides of the claim or to suggest possible misuse.

Conclusion: The refusal to allow Modvat credit on the original invoice was unjustified. Credit was allowable to the appellant.

---