Modvat credit and missing invoices: Tribunal favours fresh verification where transaction genuineness needs examination.

Modvat credit could not be denied merely because the original and duplicate invoices were unavailable where the assessee claimed destruction of the documents in a fire and produced certified copies. The Tribunal noted that, if the genuineness of the transaction is not in dispute, credit should not fail on a technical defect; however, supporting evidence must still be examined by the adjudicating authority. As the record required fresh verification and the claim had not been adequately tested, the matter was remanded to the jurisdictional Assistant Commissioner for reconsideration and a new decision on entitlement to credit.

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Issues: Whether Modvat credit could be denied for want of the original and duplicate invoice copies when the assessee claimed that the documents were destroyed in a fire accident and the genuineness of the transaction required verification.

Analysis: The dispute concerned entitlement to Modvat credit on the basis of duty paying documents in a situation where the assessee asserted that the invoice copies were burnt in a truck fire and certified copies were procured. The Tribunal noted that in cases where the genuineness of the transaction is not in dispute, credit should not be denied merely on technical grounds, but the assessee ought to place supporting evidence before the adjudicating authority. As the matter had not been adequately verified and the evidence needed fresh examination, the issue required reconsideration.

Conclusion: The denial of Modvat credit was not finally upheld, and the matter was remanded to the jurisdictional Assistant Commissioner for fresh verification and a new decision.

Final Conclusion: The appeal succeeded to the extent of remand, leaving the entitlement to Modvat credit open for reconsideration on evidence.

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