Modvat credit on a Bill of Entry copy cannot be denied when the later notification does not apply to the relevant period.

Modvat credit was admissible where the governing rule for the relevant period allowed credit on a Bill of Entry and the quadruplicate copy produced was treated as a valid Bill of Entry. A later notification prescribing a different documentary requirement was held inapplicable to that period, so credit could not be denied on that basis. The goods had been received in the factory and used in manufacture, and the exemption condition was not disputed. Credit was therefore allowed for the seventh consignment, while denial of credit for the uncontested consignments remained undisturbed, giving the assessee partial relief.

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Issues: Whether Modvat credit was admissible on the strength of the quadruplicate copy of the Bill of Entry for the seventh consignment.

Analysis: The notification relied upon by the Revenue related to a later period and was held inapplicable to the period in question. The governing rule then contemplated credit on the basis of a Bill of Entry, and the quadruplicate copy was treated as a Bill of Entry. The goods were also received in the factory and used in the manufacture of the final product, and the exemption condition was not in dispute.

Conclusion: Modvat credit on the seventh consignment was held admissible in favour of the assessee.

Final Conclusion: The denial of credit was sustained for the uncontested consignments, while the credit claimed on the Bill of Entry copy was allowed, resulting in partial relief to the assessee.

Ratio Decidendi: Where the governing Modvat rule permits credit on a Bill of Entry and the document produced is a valid copy of that Bill of Entry, credit cannot be denied merely because a later notification prescribes a different documentary requirement for a subsequent period.

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