Modvat credit cannot be denied for clerical errors in RG 23A entries when duty payment and use in manufacture are proven.

Modvat credit could not be denied where the duty-paid input was established and its use in manufacture was shown, even though there were clerical mistakes in the RG 23A entries and in the description or number of the duty-paying document. The discrepancy was treated as an inadvertent recording error, and the essential conditions for credit were found satisfied. The departmental objection was therefore regarded as purely technical and unsustainable, so the credit claim was allowed to stand.

---

---

Issues: Whether Modvat credit could be denied on account of clerical mistakes in the RG 23A entries and the description or number of the duty-paying document, when the duty-paid input and its use in manufacture were otherwise established.

Analysis: The document evidencing payment of duty was produced, and the discrepancy in the RG 23A Part I and Part II entries was treated as an inadvertent clerical mistake. The essential requirements for availing Modvat credit, namely the existence of duty payment on the input and its utilisation in the manufacture of the final product, were found to be satisfied. The departmental objection was therefore held to be technical and unsustainable.

Conclusion: Modvat credit could not be denied on the basis of the clerical error, and the objection of the department failed.

---