Modvat credit on lost duplicate invoice requires enquiry before denial; mere non-satisfaction is not enough.

Modvat credit under Rule 57G(2A) could be claimed on the original invoice where the duplicate copy was lost in transit, subject to the Assistant Collector's satisfaction. That satisfaction requirement did not amount to a need for prior permission before availing credit. The authority was expected to conduct an enquiry, including verification from the originating range, before rejecting the claim. Refusal to accept the plea of loss without any enquiry was improper, so denial of credit on the existing record was unsustainable and the matter was remanded for de novo decision.

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Issues: Whether Modvat credit could be denied merely because the duplicate invoice was lost, and whether the Assistant Collector was required to make an enquiry before refusing credit under Rule 57G(2A) of the Central Excise Rules, 1944.

Analysis: Rule 57G(2A) permits a manufacturer to take credit on the basis of the original invoice where the duplicate copy is lost in transit, subject to the satisfaction of the Assistant Collector. The requirement of satisfaction does not mean prior permission before availing credit. The proper course is to make an enquiry, including verification from the originating range, and then decide whether the credit is admissible. A refusal to accept the plea of loss without any enquiry is not proper.

Conclusion: The denial of Modvat credit on the present record was unsustainable, and the matter was remanded for enquiry and fresh decision de novo.

Ratio Decidendi: Under Rule 57G(2A), the authority must verify the claim of loss through enquiry before disallowing credit; mere non-satisfaction without enquiry is insufficient to deny Modvat credit.

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