Modvat credit on attested gate passes cannot be denied when inputs were already received and prior procedure permitted the claim.

Modvat credit on the basis of an attested gate pass could not be denied merely because the certified copy was used after receipt of the inputs. The material date was the receipt of inputs, not the later entry of credit in the records. An indemnity bond was required only where credit was claimed before receipt of the attested copy, not where the certified document was already available. A subsequent Board circular withdrawing the could not override the earlier procedure permitting such credit. The rejection of credit on that ground was unsustainable, and the matter was to be examined in accordance with the earlier directions.

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Issues: Whether Modvat credit could be denied merely because it was taken on the basis of an attested copy of the gate pass after receipt of the inputs, and whether the later Board circular could defeat the credit claim despite earlier instructions permitting such a procedure.

Analysis: The remand order had required only examination of the certified copy of the gate pass and the relevant factual dates. The lower authority exceeded the scope of those directions by treating the later Board circular as decisive and by questioning the Board's power to issue executive instructions. The requirement of an indemnity bond applied only where credit was sought before receipt of the attested copy, not where credit was taken after receipt of the certified document. The decisive factor was the receipt of inputs, not the later act of entering credit in the records. The rejection of credit on the ground that the facility had been withdrawn and that credit was taken after the circular was therefore unsustainable.

Conclusion: The denial of Modvat credit was not justified and the assessee was entitled to have the certified gate pass examined and the credit allowed in accordance with the applicable procedure.

Final Conclusion: The appeal succeeded, the adverse orders were set aside, and the matter was sent back for fresh examination consistent with the earlier directions.

Ratio Decidendi: For Modvat credit based on attested documents, the material date is the receipt of inputs and the claim cannot be defeated by a subsequent administrative withdrawal where the applicable procedure had already permitted such credit.

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