Modvat credit cannot be denied solely for missing RG 23A Part I entries when private records show receipt and use of inputs.

Modvat credit should not be denied solely because inputs were not entered in RG 23A Part I when private records, including gate inward registers, stock cards and invoices with inward stamps, show receipt and use of the inputs in manufacture. The omission to maintain the statutory register is treated as a procedural lapse rather than conclusive proof against credit. The matter is remanded for fresh decision after examining the private records on receipt and utilisation of inputs in the final product.

---

---

Issues: Whether Modvat credit could be denied solely because the inputs were not entered in RG 23A Part I register, despite private records showing receipt and utilisation of the inputs.

Analysis: The appellant had maintained private records such as gate entry inward register, stock cards and invoices bearing goods inward stamps, indicating receipt of the inputs in the factory. The omission to maintain RG 23A Part I was treated as a procedural lapse. The private records were not considered by the adjudicating authority while denying credit.

Conclusion: The matter was remanded for de novo decision after considering the private records relating to receipt of inputs and their utilisation in the final product.

---