Modvat credit on invoice copies restored where inputs were duly received and technical invoice defects were not material.

Modvat credit could not be denied merely because the inputs were supported by the original and triplicate copies of invoices rather than the duplicate copy during the initial stage of the invoice-based clearance system. The invoices were issued after the new system began, the Board had granted relaxation, and the documents showed converted gate passes valid for transport; as the goods were admittedly received from the manufacturer, refusal of credit on a purely technical ground was unjustified. Credit relating to the two invoices was required to be restored to the assessee.

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Issues: Whether Modvat credit could be denied merely because the inputs were covered by the original and triplicate copies of invoices, instead of the duplicate copy, during the initial period following introduction of clearance of goods on invoice basis.

Analysis: The invoices were dated after the introduction of the invoice system, and the Board had granted relaxation during the initial stage. The copies showed that the gate passes had been converted into invoices and marked as valid for transport. The inputs were admittedly received from the manufacturer, and there was no dispute that the goods covered by the invoices reached the appellant. In these circumstances, denial of credit on a purely technical ground was not justified.

Conclusion: Modvat credit could not be denied on the facts of the case, and the credit covered by the two invoices was required to be restored in favour of the assessee.

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