Modvat credit on original invoice allowed where duplicate copy was lost in transit, subject to verification and proper records.

Modvat credit may be allowed on the strength of the original invoice where the duplicate copy is lost in transit, subject to verification by the jurisdictional authority. The relaxation under Rule 57G(2A), as clarified by the Board, can also apply in appropriate cases involving a manufacturer's depot receiving goods under Rule 52A and maintaining prescribed Modvat records. Because the scheme is beneficial and intended to grant input duty relief, a technical objection should not defeat credit where loss of the duplicate is supported by evidence. Credit was therefore permissible on proper scrutiny by the Assistant Commissioner.

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Issues: Whether Modvat credit could be allowed on the basis of the original invoice where the duplicate copy was lost in transit, and whether that relaxation could extend to a manufacturer's depot receiving goods under Rule 52A.

Analysis: Rule 57G(2A) permits credit on the strength of the original invoice when the duplicate is lost in transit, subject to verification by the jurisdictional authority. The Board's circular also clarified that this relaxation applies in appropriate cases under Rules 52A and 57GG. The goods were received by the depot from the manufacturer, the loss of the duplicate invoice was supported by evidence, and the depot maintained the prescribed Modvat records. In these circumstances, a liberal construction was warranted because the Modvat scheme is a beneficial provision intended to grant input duty relief and should not be defeated by an unduly technical reading.

Conclusion: The assessee was entitled to claim credit on the original invoice, subject to proper scrutiny by the Assistant Commissioner.

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