Modvat credit documentation: a later duplicate-invoice requirement could not retrospectively deny credit validly taken on the original invoice.

During the relevant period, Modvat credit on capital goods was available on the basis of the original invoice under Rule 57T, and the later documentary requirement linked to Rules 57G and 52A had not yet been incorporated. Notification No. 23/94 introduced a new procedural framework and could not operate retrospectively to impose a duplicate-invoice requirement on credit already validly availed after verification and certification by the Superintendent. The earlier Tribunal view that the original invoice was sufficient was followed, and the denial of credit was held unsustainable, with relief granted to the assessee.

---

---

Issues: Whether Modvat credit on capital goods could be taken on the basis of the original invoice during the relevant period, and whether Notification No. 23/94 dated 20-5-1994 could be applied retrospectively to require a duplicate invoice.

Analysis: During the relevant period, Rule 57T did not incorporate the later documentary requirement linked to Rules 57G and 52A. The credit scheme then in force permitted credit on the original invoice, and the appellants had taken credit after verification and certification by the Superintendent. Notification No. 23/94 introduced a new procedural framework and was not merely clarificatory. A prospective change affecting completed acts could not be applied retrospectively to deny credit already validly availed. The issue was also covered by the Tribunal's earlier view that the original invoice was sufficient during the relevant period.

Conclusion: The denial of Modvat credit was unsustainable, and the issue was decided in favour of the assessee.

Final Conclusion: The impugned order was set aside and the appeals were allowed with consequential relief.

Ratio Decidendi: A subsequent notification introducing a new documentary requirement for Modvat credit cannot be applied retrospectively where the earlier rule permitted credit on the original invoice and the credit had been validly taken under the then-existing procedure.

---