Modvat credit on delayed declarations allowed where condonation was sought and no rejection was communicated.

Modvat credit was treated as admissible where the assessee filed the declaration for the disputed inputs within six months of receipt and also sought condonation of delay. The analysis notes that, under the Central Excise Rules, a delayed declaration had to be supported by a condonation request, and in the absence of any communicated rejection of that request, the assessee could presume that the delay had been condoned. The invoices covering the inputs were therefore regarded as validly declared in time, and credit was allowed.

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Issues: Whether Modvat credit was admissible where the declaration and request for condonation of delay were filed within six months of receipt of inputs and no order rejecting condonation was communicated.

Analysis: Modvat availment under the Central Excise Rules required a proper declaration, and the delayed filing had to be accompanied by a request for condonation. On the facts, the declaration relating to the disputed inputs was filed within six months of receipt, along with the request for condonation. Since no communication was issued stating that the delay had not been condoned, the assessee was entitled to proceed on the normal presumption that the delay stood condoned. The inputs covered by the relevant invoices were therefore treated as having been validly declared within time.

Conclusion: The assessee was entitled to Modvat credit on the disputed inputs, and the Revenue's challenge failed.

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