Modvat credit on duplicate cash memos upheld where manufacturer certificate and supporting documents satisfied the credit requirements.

Modvat credit could not be denied where IOC cash memos were supported by a certificate stating that the memos had been issued as duplicate copies for credit purposes. The objection that the memos did not themselves show their duplicate nature, and that the certificate was not produced with the RT-12 returns, was not raised in the memorandum of appeal. As the issuing manufacturer's authority to grant the certificate was also undisputed, the documents were treated as satisfying the Modvat requirements and the credit claim was accepted.

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Issues: Whether Modvat credit could be denied on IOC cash memos when supported by a certificate showing that the memos were issued as duplicate copies for availment of credit and the appeal did not challenge the relevant factual basis.

Analysis: The cash memos were accompanied by a certificate from IOC stating that they had been issued as duplicate copies for the purpose of Modvat credit. The objection that the memos did not indicate their nature as duplicate copies and that the certificate was not produced with the RT-12 returns was not reflected in the memorandum of appeal. The authority of IOC to issue the certificate was also not disputed. On these facts, the documents were held to satisfy the requirements of the applicable Modvat rules for availment of credit.

Conclusion: The challenge to the availment of Modvat credit failed and the assessee was held entitled to the credit.

Ratio Decidendi: Where the supporting documents, read with a certificate from the issuing manufacturer, establish that the inputs were covered by duplicate copies for Modvat purposes and the relevant objection is not raised in appeal, Modvat credit cannot be denied for want of formal endorsement.

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