Modvat credit requires duplicate invoices; credit on original copies was held inadmissible absent proof of lost duplicate and authority satisfaction.

Modvat credit was allowed only on the duplicate invoice prescribed by the rules; use of the original invoice was permissible only if the duplicate copy had been lost in transit and the jurisdictional Assistant Commissioner was satisfied on that loss. Applying the Larger Bench ruling, the requirement was treated as mandatory, and credit taken without departmental intimation was held unsustainable. On that basis, credit taken both before and after 20-5-1994 on original invoices was held inadmissible, and the assessee's claim failed.

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Issues: Whether Modvat credit taken on the strength of original copies of invoices was admissible for the period before and after 20-5-1994.

Analysis: The governing rule required credit to be taken on the duplicate copy of the invoice. Credit on the original copy was permissible only where the duplicate copy had been lost in transit and the jurisdictional Assistant Commissioner was satisfied about that loss. The ruling of the Larger Bench was applied to hold that the requirement was mandatory and that credit taken without intimation to the Department could not be sustained. On that basis, the credit taken after 20-5-1994 was held inadmissible, and the same reasoning was extended to the credit taken before that date as well.

Conclusion: Modvat credit on the strength of original copies of invoices was held not admissible both before and after 20-5-1994, and the assessee's claim failed.

Ratio Decidendi: Where the rules prescribe duplicate invoice as the basic document for Modvat credit, credit on the original invoice is allowable only on proof of loss of the duplicate in transit and satisfaction of the competent authority; credit taken otherwise is inadmissible.

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