Modvat credit on original invoices was inadmissible where the rules required a prescribed duplicate copy and the circular did not apply.

Modvat credit was claimed on the strength of original invoices, although the Central Excise Rules required the duplicate or transporter's copy. Permission to continue using old stationery was limited up to 30-4-1994, and the invoices at issue were issued later, so that permission did not assist. The circular relied on by the assessee concerned transitory provisions for registered dealers under a different scheme and did not apply to manufacturer-issued invoices on these facts. The larger Bench view that credit is not available on invoices other than the prescribed duplicate copy was treated as controlling, and the credit was held inadmissible.

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Issues: Whether Modvat credit could be taken on the strength of the original copy of invoices and whether the benefit of the cited circular and permission to use old stationery extended to the invoices involved.

Analysis: Modvat credit was claimed on original invoices instead of the duplicate or transporter's copy required under the applicable Central Excise Rules. The permission to continue using old stationery was shown to be limited upto 30-4-1994, whereas the invoices in question were issued later. The circular relied upon dealt with transitory provisions for registered dealers under a different scheme and did not apply to manufacturer-issued invoices in the present facts. The larger bench view that credit on invoices other than the prescribed duplicate copy is not permissible was treated as governing.

Conclusion: The Modvat credit was not admissible and the finding against the assessee was upheld.

Final Conclusion: The appeal failed because the credit was claimed on improper invoices and the relied-upon circular did not extend relief on these facts.

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