Modvat credit on original invoices requires loss of duplicate copy and strict intimation procedure before verification.

Modvat credit on original invoices was available only where the duplicate copy had been lost and the claim was satisfied by the Assistant Commissioner, with prompt written intimation to the Superintendent for verification. Because the transporter copy was said to have been misplaced in the factory rather than lost in transit, no intimation was given to the jurisdictional Superintendent, and the request was made long after receipt of the inputs, the prescribed conditions were not met. Credit was therefore not admissible on the basis of the original invoices, and the denial of credit was sustained.

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Issues: Whether Modvat credit could be availed on the strength of original invoices where the duplicate transporter copy was stated to be misplaced and the prescribed intimation and verification procedure was not followed.

Analysis: Rule 57G(2A) permitted credit on original invoices only when the duplicate copy had been lost and the claim was subject to the satisfaction of the Assistant Commissioner. The relevant trade notice also required prompt written intimation to the Superintendent with a copy to the jurisdictional Assistant Collectorate so that verification could be made within the prescribed time. Here, the application itself stated that the transporter copy was misplaced in the factory, not lost in transit, and no intimation was given to the jurisdictional Superintendent. The request for permission was also made long after receipt of the inputs.

Conclusion: The conditions for availing Modvat credit on the basis of original invoices were not satisfied, and the denial of credit was sustained against the assessee.

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