Modvat credit cannot be denied for delayed document receipt when the duty-paid goods and gate pass relate to the same goods.

Modvat credit could not be denied merely because the duty-paid goods were received without the duty paying document accompanying them at the time of receipt, where the gate pass related to the very goods received. Rule 57G required receipt of goods under cover of a duty paying document, but it did not require simultaneous physical accompaniment of the document with the goods. Credit was therefore not to be refused solely for late receipt of the goods or delayed production of the document, so long as the document evidenced duty payment on the same goods.

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Issues: Whether Modvat credit could be denied merely because the duty-paid goods were not received along with the duty paying document, though the document related to the very goods received.

Analysis: The gate pass was found to be relatable to the goods actually received, and therefore it covered those goods. Rule 57G required receipt of goods under cover of a duty paying document, but it did not require that the document must accompany the goods at the time of receipt. The Tribunal also noted that credit could not be refused solely on the ground of late receipt of the goods, particularly where the document evidenced payment of duty on the same goods.

Conclusion: Modvat credit could not be denied on the stated ground and the assessee was entitled to the credit.

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