H1-B denied - 221g. How to reapply with new petition?


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I am badly in need of help and advice! 

I’m an Indian working in the U.S. on H1-B. I've been here for a few years on H1. Back in December 2016, when I went to India, I went to renew my soon-to-expire (in Feb 2017) H1-B. I was eligible for drop box and so I dropped off my documents at the office.

 When I got the passport back, I found out that my visa was denied because my passport was slightly damaged. They had given a blue slip saying that my passport had to be replaced.

I still travelled to the U.S. despite the denied visa in December 2016 as I still had my old visa valid until Feb 2017.

Recently, I got a new I-797. My old one was valid only until May 2017.

Now, I plan to go back to India next month. I don't know if I should

1)      Ignore the blue slip and make a new DS160 and attend interview? Am I allowed to do this? Or

2)      Use the blue slip and submit both my new passport and the new I-797? Am I allowed to do this?

I prefer doing a new DS160 and doing the interview instead of dropping off my documents just because I can explain in case they had any questions and also because I have a new I-797. Is it OK to do this?

What should I do? I am so confused! Any advice is most welcome!



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