Clarificatory Modvat rules allowed credit on original invoices when the duplicate transporter copy was unavailable.

Modvat credit was held admissible on the strength of the original invoice where the duplicate transporter copy was lost, because the dispute concerned only the form of and not receipt or use of goods. The Tribunal treated Notification No. 23/94-C.E. (N.T.), issued after the credit scheme had just begun, as a clarificatory measure that made explicit what was already implicit in the procedural regime. On that basis, the department's objection failed and credit could be taken on original invoices for the relevant period.

---

---

Issues: Whether Modvat credit could be taken on the basis of the original invoice when the duplicate transporter copy was lost, for credits taken during 20-4-1994 to 4-5-1994.

Analysis: The dispute was confined to the admissibility of credit on original invoices. There was no dispute regarding receipt of the goods or their use in manufacture. The relevant credit regime had just commenced from 1-4-1994, and Notification No. 23/94-C.E. (N.T.) dated 20-5-1994 clarified that credit could be taken on the strength of the original invoice where the duplicate copy was unavailable. The Tribunal followed its earlier view that such an amendment or clarification was meant to make explicit what was already implicit in the scheme and therefore operated as a clarificatory provision.

Conclusion: Credit on the strength of the original invoice was admissible, and the department's challenge failed.

Ratio Decidendi: A provision or notification that merely clarifies the manner of taking Modvat credit, in the context of a newly introduced procedural regime, is to be treated as clarificatory and may support credit on original invoices where the duplicate copy is lost.

---