Modvat credit on inputs upheld where consignment-agent challans sufficiently proved duty payment and quantity details.

Modvat credit was held admissible where duty-paid inputs were supported by challans issued by a consignment agent. The challans identified the quantity of inputs and duty particulars, and the consigning concern was shown to be acting for TISCO rather than independently. On that basis, the documentary requirements under Rule 57G(1) and the Board's circular on acceptable proof of duty payment were treated as satisfied. The Collector (Appeals) was therefore right to accept the challans as valid evidence for credit, and the Department's challenge failed.

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Issues: Admissibility of Modvat credit on duty-paid inputs supported by challans issued by a consignment agent.

Analysis: The challans showed that the consigning concern was acting for TISCO and not independently, and the documents disclosed the quantity and duty particulars of the inputs. In these circumstances, the requirements of Rule 57G(1) and the Board's circular regarding acceptable evidence of duty payment were treated as satisfied. The Collector (Appeals) therefore rightly accepted the challans as valid support for credit.

Conclusion: The challans issued by the consignment agent were valid for Modvat credit and the Department's challenge failed.

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