Modvat credit cannot be denied for a description mismatch where brass pigs and brass ingots are certified as technically the same input.

Modvat credit could not be denied merely because the declaration referred to brass pigs instead of brass ingots, where a government factory certificate showed both to be technically the same input in casting form and the material was used in manufacture of the final product. The authorities' objection based on the supposed distinction between the two descriptions lost its factual foundation once that certificate was produced, so the credit was held admissible.

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Issues: Whether Modvat credit could be denied merely because the declaration mentioned brass pigs instead of brass ingots, when the two were certified to be technically the same input and the goods were used in the manufacture of the final product.

Analysis: The denial of credit rested on the absence of proof that brass pigs and brass ingots were one and the same and on the absence of a declaration for brass ingots. The appellant produced a certificate from the Government factory stating that brass pigs and brass ingots are technically the same thing in casting form of suitable shape and size. In the presence of this certificate, the factual basis for disallowing the credit disappeared.

Conclusion: Modvat credit could not be denied on the ground relied upon by the authorities below, and the assessee was entitled to the credit of Rs. 1,10,700/-.

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