Modvat credit on spare parts: tariff-heading disclosure was sufficient, and item-wise naming was not required for admissibility.

Modvat credit on capital goods was not to be denied merely because the declaration for spare parts did not list each individual item by name. The disclosure identified the goods as spare parts and specified the relevant tariff heading, which was treated as sufficient compliance with Rule 57T(1). Item-wise description of every spare part was held unnecessary where the tariff classification and nature of the goods were stated. On that basis, denial of credit was unjustified and the credit was admissible.

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Issues: Whether Modvat credit on capital goods could be denied for want of a declaration specifying the individual names of each spare part, where the spare parts were declared with the relevant tariff heading.

Analysis: The declaration filed for the spare parts identified them as such and mentioned the appropriate tariff heading under which they fell. The requirement of Rule 57T(1) was treated as satisfied by this disclosure, and the absence of item-wise description of every spare part was held not to be a valid ground for rejection of credit.

Conclusion: The denial of Modvat credit was unjustified and the credit was admissible.

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