Modvat credit on xerox depot invoice copy accepted where duty-paid inputs and substantial compliance were shown.

Modvat credit could not be denied merely because the claim was based on a xerox copy of the depot invoice, where the inputs were duty paid, supported by the manufacturer's copy and endorsed in RG 23A Part II. The Tribunal accepted that there was substantial compliance with Rule 57G and that the inputs were used in or in relation to manufacture, so the document was not invalid or misused for credit purposes. Notification No. 15/94-C.E. (N.T.) reinforced this position. The credit was therefore admissible and the departmental appeal failed.

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Issues: Whether Modvat credit could be denied on the ground that the credit was taken on the basis of a xerox copy of the depot invoice and whether such document was invalid under Rule 57G.

Analysis: The assessee had received duty-paid inputs covered by the depot invoice supported by the manufacturer's copy, and the credit claim was supported by endorsement in RG 23A Part II. The Tribunal noted that the Commissioner (Appeals) had found that the inputs were duty paid and used in or in relation to the manufacture of the final product, and that there was substantial compliance with the Modvat requirements. In these circumstances, the document could not be treated as misused or insufficient to deny credit, particularly in the light of Notification No. 15/94-C.E. (N.T.) dated 30-3-1994.

Conclusion: The Modvat credit was admissible and the departmental appeal failed.

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