Modvat credit on original invoice upheld where records proved receipt of duty-paid inputs despite loss of the duplicate invoice.

Modvat credit could not be denied merely because the duplicate invoice was lost in transit where the assessee produced the original invoice and supporting records showing receipt of duty-paid inputs. Rule 57G(2A) of the Central Excise Rules, 1944 allowed credit on the original invoice subject to the Assistant Collector's satisfaction, and the evidence included lorry receipts, material receipt registers and stores records. Rejection without examining that evidence or verifying actual receipt of duty-paid goods was unjustified, so the credit was allowed.

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Issues: Whether Modvat credit could be denied when the duplicate invoice was lost in transit, but the assessee produced the original invoice and supporting records to show receipt of duty-paid inputs.

Analysis: Rule 57G(2A) of the Central Excise Rules, 1944 permitted credit on the original invoice subject to satisfaction of the Assistant Collector. The assessee produced the original invoices, lorry receipts, material receipt registers and stores records to establish that the inputs were received from the manufacturer and that duty had been paid. The rejection was made without examining the relevant evidence or addressing whether the goods were actually received and duty-paid.

Conclusion: Denial of Modvat credit was not justified, and the assessee was entitled to the credit.

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