Modvat credit requires strict proof of duty payment and prescribed invoice documents; extra copies cannot replace the duplicate copy.

Modvat credit was held inadmissible where the invoices did not show the PLA entry number or other conclusive proof that duty had been paid on the inputs, and no material showed permission for consolidated entries. The required duplicate invoice was also not produced, and an extra copy could not replace the prescribed document. On both grounds, strict documentary compliance was treated as essential for availing credit, and the denial of credit was sustained.

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Issues: (i) Whether Modvat credit could be allowed on invoices not showing the PLA entry number evidencing payment of duty on the inputs. (ii) Whether Modvat credit could be allowed on the basis of an extra copy of invoice instead of the duplicate copy required for availing credit.

Issue (i): Whether Modvat credit could be allowed on invoices not showing the PLA entry number evidencing payment of duty on the inputs.

Analysis: The availability of Modvat credit depended upon proof that duty had actually been paid on the inputs. In the absence of the PLA entry number or other conclusive documentary evidence showing debit of duty, and with no material establishing that the supplier had permission for consolidated entries, the claimed credit could not be sustained.

Conclusion: Modvat credit was not admissible on the three invoices lacking the PLA entry number, and the finding was against the assessee.

Issue (ii): Whether Modvat credit could be allowed on the basis of an extra copy of invoice instead of the duplicate copy required for availing credit.

Analysis: The duplicate copy was the requisite document for availing Modvat credit. No satisfactory explanation was offered for non-production of the duplicate copy, and the extra copy could not substitute the prescribed document.

Conclusion: Modvat credit was rightly denied on the basis of the extra copy of invoice, and the finding was against the assessee.

Final Conclusion: The denial of Modvat credit on both counts was sustained, and the appeal failed.

Ratio Decidendi: Modvat credit can be availed only on strict proof of duty payment and on production of the prescribed documents; in the absence of such proof or the required duplicate invoice, the credit is not admissible.

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