Modvat credit on original invoice after loss of duplicate invoice remanded for fresh verification of duty-paid goods

Modvat credit could be examined where the prescribed duplicate invoice was lost, provided the duty-paid character of the goods was verified and the Rule 57G safeguards were satisfied. The later amendment and Notification No. 23/94 were treated as reflecting the same principle and as supporting consideration of credit on the original invoice, even where the goods had been received before the notification. The denial was therefore set aside and the claim was remanded for fresh decision on compliance with the prescribed conditions.

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Issues: Whether Modvat credit could be allowed when the prescribed duplicate invoice was lost and the goods had been received under the original invoice, and whether the subsequent amendment and notification permitting acceptance of the original invoice could be applied to the assessee's case.

Analysis: The claim was based on the loss of the duplicate invoice, which was the prescribed document under Rule 57G, and on the subsequent administrative relaxation introduced by Notification No. 23/94 dated 20-5-1994. The governing consideration was that loss of the prescribed document was a recognized contingency, and credit could be examined on verification of the duty-paid character of the goods. The later amendment was treated as reflecting the same principle and as supporting consideration of the claim even though the goods had been received before the notification, because the issue was not denied on merits but required verification of compliance with the prescribed safeguards.

Conclusion: The assessee's claim for Modvat credit was held fit for reconsideration and the denial was set aside, with the matter remanded for fresh decision in accordance with the stated parameters.

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