Strict three-month limit for Rule 57T declaration bars delayed Modvat credit on capital goods.

Rule 57T allowed Modvat credit on capital goods only if the declaration was filed before receipt of the goods, with delayed filing condonable in ordinary cases up to one month and, in exceptional cases, by a further two months. The provision created a strict outer limit of three months, after which the Assistant Commissioner had no jurisdiction to condone delay, even if the delay was inadvertent or bona fide. A declaration filed beyond that period could not be validly condoned, and Modvat credit was not admissible.

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Issues: Whether credit of duty on capital goods could be allowed when the declaration under Rule 57T was filed beyond the maximum permissible period of three months.

Analysis: Rule 57T required a manufacturer intending to avail credit on capital goods to file the declaration before receipt of the goods, while sub-rule (3) permitted delayed filing only within one month in ordinary cases and up to a further two months in exceptional cases. The combined effect of the provision was that the delay could be condoned only up to a total period of three months and not beyond. Once that outer limit expired, the Assistant Commissioner had no jurisdiction to condone the delay, irrespective of whether the delay was inadvertent or bona fide.

Conclusion: The declaration filed after three months could not be validly condoned, and the benefit of Modvat credit was not admissible.

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