Modvat credit cannot be denied for missing original gate pass when filed documents and duty payment can be verified.

Modvat credit cannot be denied solely because the original gate pass is missing from the departmental record when the assessee has filed the prescribed documents, the department has acknowledged receipt, and a certified true copy of the gate pass is produced. The key consideration is whether the inputs were in fact duty-paid and capable of verification by the department. Procedural compliance under Rule 57G is satisfied in these circumstances, and any departmental lapse in handling the filed papers cannot be used to defeat the credit claim. The credit is therefore available, subject to verification of duty payment on the goods.

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Issues: Whether Modvat credit could be denied merely because the original gate passes were not found on record when the assessee had produced an acknowledgement for the filed documents and a certified copy of the gate pass.

Analysis: The assessee had submitted the required documents and the Range Inspector had acknowledged receipt of the file containing them. The absence of the original gate pass in the departmental record could not, by itself, defeat the credit claim when the acknowledgement remained unchallenged and the assessee also produced a certified true copy of the gate pass. The controlling consideration was whether the inputs had in fact suffered duty, which was open to verification by the department. On these facts, the assessee had complied with the procedural requirement under Rule 57G and any departmental lapse in handling the filed documents could not be visited on the assessee.

Conclusion: The denial of Modvat credit was not justified. The assessee was entitled to the benefit, subject to verification of duty payment on the goods.

Ratio Decidendi: Where the assessee has filed the prescribed documents and their receipt is acknowledged by the department, Modvat credit cannot be refused solely for non-production of the original gate pass if the duty-paid nature of the inputs can otherwise be verified.

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