Modvat credit cannot be denied for missing original Bill of Entry when duty payment and input use are otherwise verified.

Modvat credit could not be denied merely because the original Bill of Entry was unavailable where the assessee produced an attested photocopy of the Bill of Entry and the original TR-6 challan showing duty payment. The duty payment record cross-referenced the lost Bill of Entry, and the receipt and use of the imported inputs in the factory were undisputed. Applying the principle of substantial compliance, the absence of the original document was not a valid basis to refuse credit when the department was otherwise satisfied about receipt and utilisation of the inputs.

---

---

Issues: Whether Modvat credit could be denied when the assessee produced an attested photocopy of the Bill of Entry along with the original TR-6 challan evidencing duty payment.

Analysis: The duty payment document bore a cross-reference to the lost Bill of Entry, and the inputs as well as their receipt and use in the factory were not disputed. The credit claim was supported by an attested photocopy of the Bill of Entry from the Customs authority and the original TR-6 challan. On these facts, and applying the principle that substantial compliance is sufficient where the department is satisfied about receipt and utilisation of the imported inputs, the absence of the original Bill of Entry did not justify denial of credit.

Conclusion: The assessee was entitled to Modvat credit on the attested photocopy of the Bill of Entry read with the TR-6 challan, and the denial of credit was unsustainable.

---