Modvat credit on original invoice upheld where duplicate copy was lost in transit, supporting stay relief.

Entitlement to Modvat credit was recognised on the basis of the original invoice where the duplicate copy had been lost in transit, provided the loss was satisfactorily established. The Tribunal applied the Larger Bench ruling on Rule 57G of the Central Excise Rules, 1944 and held that this principle supported a prima facie case for interim relief against recovery of the duty demand. On that footing, the request for waiver of pre-deposit and stay of recovery was allowed unconditionally in favour of the assessee.

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Issues: Whether pre-deposit of the duty demand should be waived and recovery stayed on the footing that the assessee had a prima facie case based on entitlement to Modvat credit on the original invoice where the duplicate copy was lost in transit.

Analysis: The Tribunal noted that the question was governed by the Larger Bench ruling on the scope of Rule 57G of the Central Excise Rules, 1944, which recognised that credit could be taken on the basis of the original invoice if the duplicate copy was lost in transit and the fact of loss was satisfactorily established. On that basis, the assessee was found to have a prima facie case for the interim relief sought.

Conclusion: The stay application was allowed unconditionally in favour of the assessee.

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